RELATING TO ITC VIOLATION SEC 16(4) OF CGST ACT 2017

[Asked by Guest]

My client recieved a notice that you have availed ITC in January 2019, February 2019 and March 2019 in GSTR 3B Returns for FY 2018-19 after 21-10-2019 which is violation of provisions of Section 16(4) of CGST Act 2017.

Actually my client has taken ITC of respective months only and not taken any ITC of F Y 2017-18 but filed after 21-10-2019 with late fees.

kindly guide me if there is any violation of provisions of Section 16(4) of CGST Act 2017.

AI Summary

Input tax credit time limit: dispute over whether monthly GSTR 3B fixes the cutoff, affecting entitlement to credit.
Section 16(4) restricts the timeframe for availing ITC to the due date for the return under Section 39 for the relevant September or the annual return, and the central dispute is whether Form GSTR 3B qualifies as the Section 39 return. The document records conflicting practitioner views and the Gujarat High Court reasoning questioning GSTR 3B's status, notes retrospective notifications treating GSTR 3B as a return, and outlines two responses to notices: litigate the legal characterization of the return (including writ petitions) or pursue administrative representations to GST policy bodies while compiling transactional evidence to contest departmental notices.