IN PUT TAX CREDIT SECTION 16(4)

[RAJENDRAN K A]

One assessee had paid tax after claiming ITC for the month of November, 2018 in GSTR 3B and filed the same on 31.12.2018 but the person has forgotten to file GSTR 1, which was filed later on 25.11.2019. now the department sent a notice that: since you have filed GSTR-3B return for the month of November, 2018 on 31.12.2018 ie after the due date as mentioned above ie 20.10.2019, you are requested to reverse the ITC amount. in the notice nothing mentioned about GSTR-1.

In my view since the ITC was availed with in the time hE is eligible eventhough he filed GSTR-1 belatedly on 25.11.2019

AI Summary

Input tax credit entitlement under Section 16(4): belated GSTR 3B filing can prompt reversal requests absent proper procedural notice.
Input tax credit entitlement is disputed where ITC was claimed in GSTR 3B filed after the statutory due date and GSTR 1 was filed belatedly; the core question is whether GSTR 3B claim suffices or the department can require reversal. Commentary notes administrative practice of seeking reversal and interest, practitioner insistence that reversal must follow formal show cause procedure, and references to assessment intimations and Rule 142(1A), while observing the mandatory character of statutory conditions for ITC.