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.

AI Summary

Clarification Sought on Eligibility of Input Tax Credit for GST Refund: Avail ITC Post-Receipt or Claim Month? A business entity inquired about the eligibility of claiming Input Tax Credit (ITC) for a Goods and Services Tax (GST) refund. They received goods in August 2019 and reflected the GST in their records for that month but claimed ITC in September 2019 after quality approval. They sought clarification on whether they could include this ITC in their refund claim for September under the inverted duty structure. One respondent advised that ITC should be availed after receiving goods, regardless of the month, while another stated that only ITC claimed in the refund claim month is eligible, unless filing for a quarterly refund.