Mr. X has output of ₹ 50L & ITC of ₹ 30L in June.
Mr. X has NIL output & ITC of ₹ 40L in July.
By mistake Mr. X didn’t report his output liabilities in June GSTR-3B.
He rectified the same and reported his output in July GSTR-3B and adjusted the entire liability with ITC of June & July along with Interest.
Whether Mr. is correct?
Kindly advise.
Debate on Using July ITC for June Liabilities Under GST: Experts Highlight Section 16 of the CGST Act In a discussion about the utilization of Input Tax Credit (ITC) under the Goods and Services Tax (GST), a query was raised regarding Mr. X, who failed to report his output liabilities in June but corrected this in July, using ITC from both months to settle the liability with interest. Opinions varied: some experts argued that using July's ITC for June's liabilities is not permissible due to insufficient credit in June, while others contended that there is no legal restriction against settling past liabilities with current ITC. The discussion highlighted the importance of adhering to Section 16 of the CGST Act and the potential consequences of non-compliance. (AI Summary)
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