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 Now registration has been revoked, question is whether now ITC which has never being claimed earlier whether they will be available for setting off against the liability.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

Input Tax Credit eligibility: non-filing of GST returns can bar claiming credit, with limited offset and revocation options available.
Failure to file GST returns for an extended continuous period generally precludes entitlement to Input Tax Credit for transactions during that period because return filing is a precondition to ITC. Commentators note that any unutilized ITC existing before the non-filing period may be used to set off liabilities and that applying for revocation of registration cancellation is a procedural option, but relief from the time-bar on credit for the non-filed period is unlikely.