ITC availment for FY 2018-19

[Charan N]

Good Morning to all,

Can anyone please clarify my doubt. We have filed GSTR 3B of March 19 in the month of Dec 2019. Now the department sent notice for reversal of ITC as the FY 2018-19 ITC claim due date over as per Section 16(4). As per this section and what I understand upto my knowledge is the after the due date of furnishing of the return for the September month. But here in my case I filed 3B of March before September and not calimed ITC in September or later month. Please guide me on this as this is very important to me now.

[Ganeshan Kalyani]

Is there any genuine reason for the delay. The authority may asked this queston. You cannot delay return for long time. However, your claim cannot be rejected. You need to support your claim.

[KASTURI SETHI]

As per Section 16(4) of CGST Act, the emphasis is on, "whichever is earlier". Thus ITC availed is time-barred. Proviso has to be added in Section 16(4) for allowing ITC for the year 18-19 for allowing ITC. The department's notice is correct.

Only a representation to GST Council is the remedy for getting relief.

 

[Mr Rao]

Dear sir,

I agree with the views of Shri Kasturi sir. For the financial year 2018-19, the due date of availment of credit was 20.10.2019 ( Due date of filing of GSTR-3B for Sep’ 2019). As such, if any of the registered persons were to file any return in respect of the financial year 2018-19 after the due date as mentioned above, no ITC could have been availed except in respect of IGST paid on import of goods by such registered persons ( where the credit has been availed on the strength of bill of entry by making an entry in table 4A.1 in Form GSTR-3B). You filed GSTR-3B return of March, 2019 in the month of December, 2019 which is beyond the due date of 20.10.2019 and hence no ITC could have been availed. As you have availed ITC beyond the due date of 20.10.2019, the Department has rightly sent a notice for reversal of ITC in terms of Section 16(4) of CGST Act, 2017.

[Ganeshan Kalyani]

I would like to correct my reply. The timeline to claim credit is the due date to file GSTR 3B of September month following the end of the financial year and not the return itself. I agree with the views of both the experts. Thanks.

[Jitendra Dagur]

you can utilize the credit any time after availing it on right time which i presume you have rightly availed in march-2019 by filing it before due date of September-2019 GSTR-3B return. but if you have not availed the itc in march-2019 3B return then it is gone.

AI Summary

ITC time bar under Section 16(4): late filing after the September due date bars claiming input tax credit and triggers reversal.
ITC for FY 2018-19 must be availed by the due date for the September GSTR 3B following the financial year (due date 20.10.2019); ITC claimed after that deadline is time barred and liable to reversal, except IGST on import supported by bill of entry. Filing an earlier period return after the statutory due date and availing ITC in that belated return exposes the credit to departmental notice for reversal; representation to the GST Council is a suggested administrative remedy.