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.

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.