ITC Eligibility in case of revocation

[Kushal Mishra]

Assesse has failed to filed GST returns for more than 28 months, reason being strong medical issues of proprietor. Now registration has been revoked, question is whether now ITC which has never being claimed earlier whether they will be available for setting off against the liability.

[ABHISHEK TRIPATHI]

Filing of return is one of the criteria for the entitlement of Input Tax Credit. Eligibility of the ITC for the period of 28 Months will problematic in light of Sec. 16(2)(d) of the CGST Act.

There might be a possibility of using the unutilized ITC (if any prior to 28 Months) to set off the liability of tax.

May try filing revocation of cancellation of registration.

[KASTURI SETHI]

Sh.Kushal Mishra Ji,

You cannot expect any miracle. I mean to say relief cannot be expected from ANY quarter on time-bar issue.

This is a factual legal position. Hope you will not mind my frank and sincere reply.

[Ganeshan Kalyani]

I agree with Sri Kasturi Sir's view. The law does not allow to claim ITC on time barred invoices. May it be any reason. It is like if you are absent for exam you are fail. The reason could be anything.

[KASTURI SETHI]

Most appropriate simile used by Sh.Ganeshan Kalyani Ji. Such proper usage makes the concept clearer to the reader.

AI Summary

Individual Loses GST Registration for 28 Months; ITC Eligibility Hinges on Section 16(2)(d) Filing Requirements An individual failed to file GST returns for over 28 months due to medical issues, resulting in the revocation of their registration. They inquired about the possibility of utilizing unclaimed Input Tax Credit (ITC) to offset tax liabilities. Respondents highlighted that filing returns is essential for ITC eligibility, referencing Section 16(2)(d) of the CGST Act. They noted that ITC from the period before the 28 months might be usable, but the law does not permit claiming ITC on time-barred invoices. Suggestions included attempting to revoke the cancellation of registration, though relief is unlikely.