RULE FOR AVAILING ITC AND USING FOR REFUND

[SAFETAB LIFESCIENCE]

Hi friends,

I have received goods in August, 2019 and the said invoice's GST is reflected in our 2-A in August, 2019. But I have taken the ITC for this bill in SEP-2019 because I will take credit only after the goods approved in our QC lab. My credit can not be denied till filing next Annual return.

I am applying for refund of un-availed ITC in inverted duty structure category for the month of Sep-2019 and I have worked our the eligibility and applied properly in portal. While computation of refund claimed as per statement 1, whether i can add the above mentioned in para 1 invoice in the net input tax credit (column 4 of the refund working format) or not.

Is there any rule that the ITC to be taken mandatorily only in the month of goods receipt and reflected in 2A (or) I can take credit in the next month and include this bill also for working refund claim in the next month.

We were instructed that the ITC to be taken only in the month of goods receipt and reflected in 2-A and also if we take in the next month, then this should not be considered for refund.

[Venkataprasad Pasupuleti]

It should be considered in the month of availment in your GST return.

The legal requirement is that you should avail credit after receipt of goods. The availment may be in same month of receipt or subsequent months also.

as you have availed ITC after receipt of goods, there would not be any problem in ITC availment & claiming refund.

[Rajagopalan Ranganathan]

Sir,

In my opinion if the refund claim pertains to august 2019, then the credit taken during august 2019 alone can be taken into account for claiming the refund. You cannot take the credit taken in September 2019 for the purpose of refund. If you file refund claim for a particular quarter then you can take into account the credit earned during the quarter for the purpose of claiming the refund.

AI Summary

Input tax credit timing determines refund eligibility; only credits availed within the claim period qualify for refund. ITC is recognised in the GST period in which it is availed; availment must occur after receipt of goods and may be in the same or a later month. For refunds in the inverted duty structure, only ITC availed within the refund claim period may be included; quarterly refund claims may aggregate ITC availed during that quarter.