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

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.