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

Input tax credit timing: reverse prematurely claimed import IGST and re claim in the month the credit accrues. Claim Input Tax Credit for IGST on imports only when it accrues and the invoice/goods are available; claiming before accrual is not in accordance with section 16 and rules. Reverse the prematurely claimed credit in the subsequent month as ineligible and then claim the credit in the month the import credit actually accrues; one view suggested retention if the tax was paid in the earlier period, but guidance emphasises reversal and re claim to align with accrual and invoice requirements.