ITC on debit notes

[Amresh kumar]

Dear sir,

One of my service provider was providing professional / consultancy service.

Now it has come to notice that he had crossed the limit of ₹ 30 Lakhs in 2018-19 but failed to get himself registered as the limit crossed was only by fifty thousand Rs.

Now while filing the Income tax return for 2019-20 ( filed late due to covid) it is noticed that he HSS crossed the limit of ₹ 20 lakhs.

Department has still not noticed it.

Noe hr HSS got himself registered under GST.

He is discharging the GST liability from 2018-19 onwards and raising Debit Notes for GST paid for each financial year w.e.f. 2018-19 onwards.

Can I claim ITC on Debit Notes raised for GST payment for year 2018-19 onwards as he is raising Debit Notes in current month I.e. April 2021

Regards

Amresh Kumar

AI Summary

Input tax credit limitation: invoice date controls entitlement, debit notes cannot override statutory time bar on past credits.
Availability of input tax credit for tax paid by an unregistered supplier after the fact depends on invoice based entitlement and statutory time limits under Section 18(2); debit notes are integrated with the underlying invoices and cannot extend ITC beyond the one year limitation. Suppliers who obtain belated registration and pay tax, interest and penalties may issue tax or supplementary invoices enabling recipients to claim ITC only if the invoices fall within the permissible period, but claims for past period credit are contestable and may be barred by provisions precluding credit where tax was recovered under enforcement proceedings.