Eligibility of Input tax credit

[Sushil Aggarwal]

A supplier, has supplied goods to various branches of a buyer under different invoices on 20th March 2020. It declared all the invoices in April 20 GSTR-1 and paid taxes in relevant 3B. The supplies were interstate so EWB were also raised during the months of Mar, Apr and May but due to lock down, the goods could be delivered to the buyer only in June, July and Aug 2020. The buyer did not claim ITC in 3B in April 2020 in the absence of receipt of goods and invoices. The process is that Supplier was under obligation to first install and commission the goods under supply to make the goods acceptable. Only after that the buyer would accept invoice alongwith material. The process is completed now. Now the buyer is asking for current dated invoices to enable him to claim ITC. Sept. 2020 return has already been filed by both the supplier as well as buyer. The buyer also does not want to return the subject goods.

Q.1. What are the options with Supplier to cancel the old invoices and issue fresh invoices?

Q.2. Whether buyer can still claim ITC on the invoices dated March 20 after filing the Sept. 20 return? If yes, provisions for the same.

[Ganeshan Kalyani]

There is no issue for the invoice raised in the month of Apri and May 20 as the time limit to claim credit on those invoices has not expired. There is condern for invoices raised in Mar 20 as the time limit to claim credit was up to Sept 20.

[KERAGODEGOPALARAO ANANTHARAO]

Sir March invoices, goods received in June, when ITC to be claimed by reciver Sir

[Ganeshan Kalyani]

before September month.

AI Summary

Input tax credit time limit: invoices within unexpired claim window allow ITC, earlier-dated invoices may be time-barred. Invoices declared in April and May remain within the allowable window for claiming input tax credit and can still support ITC claims; invoices dated in March are problematic because the window to claim ITC for those March-dated invoices had lapsed by the September filing deadline, rendering ITC recovery on those specific invoices time-barred under the stated deadline.