Dear Experts
Please give clarity on below mentioned query:
Can we utilize ITC for payment of GST liability of FY 2017-18 in the month of November 2018 if balance in credit ledger which was availed in FY 2017-18 has already been exhausted and the balance in credit ledger in current month is related to current financial year.
In other words period wise matching of ITC availed and utilised is necessary or not?
Please revert.
Clarification on Using ITC for GST Liabilities: Not Period-Specific, But Interest on Delays Must Be Paid in Cash. A participant in a discussion forum sought clarity on utilizing Input Tax Credit (ITC) for GST liabilities of FY 2017-18 in November 2018, when the credit ledger from that year is exhausted. Experts clarified that ITC utilization is not period-specific and can be used in the course of business. One expert noted that Section 16(4) of the CGST Act pertains to availing, not utilizing, ITC, though differing views from the Revenue might exist. Another expert highlighted that interest on delayed payments must be paid in cash, not through ITC. Concerns were raised about potential departmental disputes. (AI Summary)
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