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.

AI Summary

GST Input Tax Credit Can Be Reclaimed After Deadline: Rule 37(4) Clarifies No Time Limit on Reversed ITC A query was raised regarding the Goods and Services Tax (GST) and the time limit for availing Input Tax Credit (ITC) if an invoice remains unpaid beyond 180 days. The question involved whether ITC could be claimed in June 2019 for an invoice from February 2018, after the usual deadline for FY 2017-18 had passed. Responses clarified that per Rule 37(4) of the CGST rules, the time limit for reclaiming reversed ITC does not apply, allowing the credit to be re-availed even after the deadline.