ITC- limit of payment within 180 days

[Archna Gupta]

Dear Sir/ Madam

Please refer section 16(2) proviso 2.

My query is as below:

Last date of availing credit against an invoice raised in financial year is by the end of September of following year or filing of Annual return whichever is earlier. But regarding clause of 180 days this limit will be applicable?

Suppose an invoice is raised in February 2018 but it is not paid till August 2018 (180 days limit) ITC is reversed due to non-payment within 180 days. Now the payment against this invoice is made in June 2019. Can we avail this credit in June 2019 however the limit is already expired for availing ITC for invoices raised in FY 2017-18.

Please clarify.

[Pavan Mahulkar]

Dear Madam,

Rule 39(4) of CGST rules

(4) The time limit specified in sub-section (4) of section 16 shall not apply to a claim for re-availing of any credit, in accordance with the provisions of the Act or the provisions of this Chapter, that had been reversed earlier.

Regards.

[Ganeshan Kalyani]

Agreed.

[LALIT MUNOYAT]

A little correction. It is Rule 37(4) and not 39(4)

[Pavan Mahulkar]

Thanks for correction...

AI Summary

Input tax credit re availment permitted after earlier reversal where law allows re claim despite expiration of ordinary time limit. ITC reversed for non payment within the prescribed payment period may be re availed once payment is made; the re availment provision operates as an exception to the ordinary time limit for claiming credit.