Itc form non submission

[A J]

One of my client switched from composition to regular in fy 18-19..but we forgot to file itc form..how can the same be filed now?

[KASTURI SETHI]

Such declaration is an absolutely must for a person who switches from composition scheme to regular. It is a ultra serious lapse.Under Rule 40(1) of CGST Rules, 2017, you can apply for extension of time for filing ITC-01 to the Commissioner through the jurisdictional Range Officer. On the basis of declaration, the jurisdictional GST Range Officer scrutinise the records. Also read Section 18 (1)(C) of CGST Act. If extension not granted, ITC held/contained in stock on the day immediately preceding the date from which he becomes liable to pay tax under Section 9 of CGST Act, (prior to the date of switching to regular registration/scheme), will be disallowed and action under Section 73 or 74 of CGST Act will be initiated against the assessee. To prove your bona fides, bring this lapse to the notice of the jurisdictional Range Officer and obtain acknowledment. Thus you will be able to avoid penalty.

[ASHISH SHAH]

Under Rule 40(1) commissioner may by notification extend the period, not on our submission.

[KASTURI SETHI]

I agree with Sh. ASHISH SHAH. However, the matter must be brought to the notice of the jurisdictional Commissioner. There may be so many such cases of lapse. However, notifications are issued on genuine demand of the public/assesses.If any issue is raised before the Govt., solution can be expected. It is proper time to raise the issue. I am sure you have understood. I am hopeful you will get relief from the department.

AI Summary

ITC declaration non submission when switching from composition can forfeit input tax credit unless extension sought.
Failure to submit the ITC declaration when switching from composition to regular registration can lead to disallowance of input tax credit attributable to stock held immediately before becoming liable as a regular taxpayer. An extension of the filing period may be sought from the competent authority, during which the jurisdictional officer will scrutinise records; if extension is denied, assessment and recovery proceedings may follow. Taxpayers should promptly notify the jurisdictional officer and Commissioner and obtain acknowledgment to demonstrate bona fides.