ANY TIME LIMIT FOR ACCUMULATED ITC

[DINESH SHARMA]

IN THE CASE OF REAL ESTATE DEVELOPER A PARTNERSHIP FIRM REGISTERED UNDER GST AND HAS COMPLETED ONE BUILDING. ALSO PURCHASED ANOTHER PLOT OF LAND ON WHICH MULTI STORED TOWER WILL BE DEVELOPED. HOWEVER FOR PARKING ETC IF REQUIRES TO GO DEEP NEARLY MORE THAN 18 MONTH. BOOKING/AGREEMENTS ETC. MAY TAKE TIME. THUS THERE IS ACCUMULATION OF ITC AND NO OUTPUT LIABILITY FOR LONGTIME.

IS THERE ANY TIME LIMIT FOR SUCH ACCUMULATION ETC.

[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. This is for taking credit.

For utilisation of credit there is no time limit. Hence you can utilize the credit at any ntime after taking the credit.

 

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Renganathan

[KASTURI SETHI]

Time limitation is for availing ITC. No time limit for utilising or accumulation. Restriction for availing is prescribed in Section 18(2) of CGST Act and Section 16(4) of CGST Act . Other conditions for eligibility have to be taken care of.

[SANJAY JAIN]

I endorse the view of Shri Kauturi Sethi

[Mahadev R]

I agree with both experts

AI Summary

Real estate firm can utilize accumulated Input Tax Credit anytime; availing limited by Section 16(4) of CGST Act 2017. A real estate developer, a partnership firm registered under GST, inquired about the time limit for accumulated Input Tax Credit (ITC) due to a lack of output liability. The responses clarified that while there is a time limit for availing ITC as per Section 16(4) of the CGST Act, 2017, there is no time limit for utilizing or accumulating ITC. The firm can utilize the credit anytime after it has been availed, provided all conditions for eligibility are met. Multiple experts agreed on this interpretation, emphasizing the distinction between availing and utilizing ITC.