MAXIMUM TIME LIMIT FOR AVAILING ITC

[SAFETAB LIFESCIENCE]

Dear Experts,

Kindly let us know the maximum limit for availing ITC (IGST) from the date of invoice.

[YAGAY and SUN]

September month or annual return which ever is earlier.

[KASTURI SETHI]

I support the views of M/s.YAGAY And SUN, experts.

[DR.MARIAPPAN GOVINDARAJAN]

Whether you mean time limit? If so adopt the views of the experts.

[Rajagopalan Ranganathan]

Sir,

According to Section 16 (4) of CGST Act, 2017 "A registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after the due date of furnishing of the return under section 39 for the month of September following the end of financial year to which such invoice or invoice relating to such debit note pertains or furnishing of the relevant annual return, whichever is earlier."

[Ganeshan Kalyani]

The time limit is six month from the end of the financial year. That is, if the tax invoice is dated 10.12.2018 , the input tax credit of the same can be taken up to the month of September 2019 return to be filed on or before 20th October 2019.

[Nash Industries I Pvt Ltd]

A petition has been filed in Gujarat HC challenging the time limit.

Regards

S.Ramaswamy

[Ganeshan Kalyani]

The High Court of Gujarat clarified that the time limit to take credit cannot be resteicres up to 20th October of year as the time limit of six month from the year end is only if GSTR 3 would have been in place.

AI Summary

Input tax credit time limit clarified: claim permitted until the post financial year return deadline or earlier annual return.
The statutory limitation for claiming input tax credit on IGST bars taking credit after the due date for furnishing the return for the month of September following the end of the financial year to which the invoice pertains, or after furnishing the relevant annual return, whichever is earlier; practitioners describe this as effectively allowing credit until the post financial year return deadline or earlier annual return submission, and a judicial challenge questions rigid application of a six month cut off tied to return form timing.