eligibility of Input tax credit

[Bharat Cholleti]

Dear sir,

Recently 40th GST council has recommended to file the past GST returns of July 2017 to Jan 2020 between 1st July to 30th September. In this regard I would like to know can we claim Input tax credit for the year 2017-18 and 2018-19, time limit prescribed maximum limit is September in Section 16(4) of CGST Act, what is the use of giving the scheme to the dealers is just only to collect the revenue how the interest of the dealer will be protected legitimate input tax which was not all claimed by the dealers so far. please advise, Thanks in advance

[KASTURI SETHI]

Complete waiver of late fee for NIL returns and reduced late fee (nominal fee) for others are the only two benefits which must be appreciated. No benefit of ITC available which is already time barred.

[KASTURI SETHI]

Non-filing of return is a very serious offence and by giving opportunity to file returns for the past period, returns which were not filed so far, will be regularized.

[Ganeshan Kalyani]

The condition for taking credit eligibility is not linked to filing of return. The time limit to take credit is elapsed here. The opportunity is given to the taxpayers to file all pending returns and thereby regularize their return compliance. Those who do not file return will not be able to do generate e-way bill and whereby movement of goods will not happen.The customer will also not be willing to deal with a default supplier. Hence, the govt. has given an opportunity to the taxpayer to file all pending returns and make their compliance record clean.

[KASTURI SETHI]

Yes. Sh.Ganeshan Kalyani Ji. Moreover, this is the present position of law. If Govt. Intends to give such benefit, Govt. will issue notification to the effect.

[DR.MARIAPPAN GOVINDARAJAN]

I agreed with both the experts. It is the duty to avail the credit from time to time. The querist is to engage a professional to advise him the changes taken place now and then and to comply with the same and avail the benefits.

[KASTURI SETHI]

The best reply has been given by Dr.Govindarajan, Sir.

[Ganeshan Kalyani]

I too agree with the views of Sri Mariappan Sir. There are sea of changes taking place in the GST Law. It is a challenging job to keep track of the amendments. Therefore, it becomes necessary for a taxpayer to seek guidance of the GST Professionals for not missing the compliance timelines.

AI Summary

Input tax credit eligibility limited by statutory time bar; filing window waives fees but does not revive expired credits. Eligibility to claim Input Tax Credit is subject to statutory time limits and is not restored merely by a retrospective return-filing window; the announced reliefs chiefly waive or reduce late fees and regularise returns. Revival of time-barred credits would require an explicit government notification or legislative change. Filing pending returns improves compliance status and operational capacity (such as e-way bill generation) but does not confer expired substantive credit rights.