GSTR 1 filed after the due date of filing return for Sept

[Ashish Diwedi]

At time of filing GSTR 9 for FY 2018 - 2019, it has been noticed that ITC as per GSTR 2A in Table 8A is less as per compared to ITC as appearing in Table 8B. On further scrutiny, it was found that many suppliers have filed GSTR 1 after the cut off date of 1st Nov 2019. Can we claim ITC of the same or should the same be paid through DRC 03 along with interest?

Thanks in Advance.

[KASTURI SETHI]

In this scenario, you cannot claim ITC. At the same time you should not suffer because of the supplier's fault. This issue is pending in Delhi High Court in the case Tele Media. In order to to get justice, you will have to fight the case in the court. Without litigation, it is hoping against hope.

You may pay under protest and intimate the department by way of letter. Specifically there is no provision for payment of tax and interest under protest as per FAQs but I am of the view erstwhile provision in Central Excise is saved under Section 174 of CGST Act. Section 174 saves the interests of both i.e. Department as well as assessees'.

[Ashish Diwedi]

Thanks for the reply.
In this case, if we reverse the ITC amount and claim the same from supplier, will the amount claimed, shown in other income be liable to GST?

[KASTURI SETHI]

Why do you want to treat as "Other Income" ? How is it income ? Pl. clarify.

[Ganeshan Kalyani]

Sir, since the amount which you intend to recover is toward tax part of main supply and not a separate supply, GST will not apply.

AI Summary

Input tax credit eligibility denied when supplier files after cut off; pay under protest or recover from supplier. If suppliers filed GSTR-1 after the cut-off causing ITC mismatch, the recipient cannot claim that ITC. The practical options are to reverse the ITC and pursue recovery from the supplier, or pay the demand (with interest) and litigate or pay under protest pending judicial resolution; payment under protest lacks explicit FAQ backing but a saved statutory safeguard may apply. Recoveries from the supplier intended as reimbursement of the tax element of the main supply are not taxable as a separate supply under GST.