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

Time limit for availing input tax credit: must be claimed by the return for the year's following September; utilization unrestricted.
The operative constraint is a statutory deadline for claiming input tax credit: a registered person must take credit by the return deadline following the end of the financial year (the return for the month of September after the year or the relevant annual return, whichever is earlier). There is no time limit on utilisation of credit once it has been lawfully availed, though all eligibility conditions must be met before availing ITC.