Availed IGST Credit One Month prior

[Guest]

Sir

We paid IGST on Import. Ideally i should claim IGST as input in a month of bill of Entry i e Oct 17. I Wrongly claim it in the month of Sept 17. I filed return Till Sept 17. Oct Return is still to be submitted. What remedy is available for. Should i adjust it in next month Credit (Claim that much less credit) or can i claim full credit and reverse it below in reversal.

[Yash Jain]

Dear Sir,

ITC can be claimed in accordance with Sec 16 and rules as being prescribed thereof.

In order to avail ITC, you should have Invoice/Goods. In case if you have claimed credit prior to its accrual then per se it is not in accordance with prescribed rules.

Hence reverse the ITC in month of Oct (Ineligible Credit) and also take credit in month of October (Under import of Goods/Services).

Comments from esteemed members highly solicited.

Regards

[DR.MARIAPPAN GOVINDARAJAN]

You have to reverse the credit as advised by Shri Yash

[Ganeshan Kalyani]

In my view, the credit can be claimed in Sept month if the tax is paid in the same month.

AI Summary

Mistaken IGST Credit Claim? Reverse in October and Reclaim as Per Section 16 Rules for Compliance. A user inquired about mistakenly claiming IGST credit a month earlier than entitled, seeking advice on rectifying the error. One respondent advised reversing the incorrect ITC in October and correctly claiming it then, as per Section 16 rules. Another agreed with this approach, while a third suggested that if the tax was paid in September, the credit could be claimed then. The discussion centered on ensuring compliance with GST regulations for input tax credit claims.