ITC of Tax paid u/s 9(4) on supply received after 12/10/17

[DURGADUTT DUBEY]

As we all know that rcm u/s 9(4) was suspended by the government vide notification no. 38/2017 dated 13/10/2017, but, what if we have mistakenly paid tax on supplies received from unregistered party after 12/10/17 and the same has been availed as ITC in the return. Are we entitled to take credit of such paid tax ?

AI Summary

Input Tax Credit Claims Denied for Tax Under Suspended GST Section 9(4); Reverse ITC with Interest to Avoid Penalties. (4) A participant in a discussion forum inquired about the eligibility to claim Input Tax Credit (ITC) for tax paid under section 9(4) of the Goods and Services Tax (GST) Act on supplies received from an unregistered party after the suspension of that provision on October 13, 2017. The response indicated that claiming ITC for such tax is not permitted as it was paid without legal authority. Since the time limit for claiming a refund has expired, the participant must reverse the ITC with interest to avoid penalties, provided this is done before a Show Cause Notice is issued.