Claim of ITC after filing of annual accounts

[ROHIT GOEL]

Dear Sir,

One of our clients filed their Financials for FY 2017-18 in August 2018. After filing of financials they realised that they had not claimed ITC on 3 invoices either in books (they had booked entire invoice value as Expense) neither in GSTR-3B.

Therefore, they claimed ITC on these invoices in Sep 2018 in GSTR-3B and also booked ITC in books (by reversing expense by way of Prior period item in Sep 2018).

Now:

1. If we disclose the said ITC in GSTR-9 of FY 2017-18 as ITC of FY 2017-18 claimed in Apr-Sep 2018, then it creates un-reconciled difference in GSTR-9C of FY 2017-18 as it has not been claimed in books and therefore creates tax demand in GSTR-9C.

2. However, instead if ITC is claimed in GSTR-9 of FY 2018-19, then it does not create any difference as ITC has been claimed in both Books and 3B in FY 2018-19. In this case, is such claim of ITC of FY 2017-18 in FY 2018-19 incorrect or bad in law?

Please express your kind views on the same.

AI Summary

Clarifying ITC Disclosure for FY 2017-18 in GSTR-9 to Avoid Discrepancies in GSTR-9C and Prevent Tax Demand. A client filed financials for FY 2017-18 in August 2018 but missed claiming Input Tax Credit (ITC) on three invoices. They later claimed ITC in September 2018 in GSTR-3B and adjusted their books. The issue arises regarding the correct financial year to disclose this ITC to avoid discrepancies in GSTR-9C. The suggestion is to disclose the ITC in table 8 of GSTR-9 for FY 2017-18, ensuring no unreconciled differences in GSTR-9C. This approach avoids showing any discrepancies, as table 13 of GSTR-9C does not consider table 8, thus preventing a tax demand.