Claiming of Reversed ITC

[NARENDER YARRAGORLA]

We have claimed FY 17-18 ITC in FY 2018-19, later reversed the ITC in FY 2019-20 by mistake, can reclaim the ITC now?

AI Summary

Claiming Reversed ITC from FY 2017-18 Possible Without Section 16(4) Time Limit, but Expect Potential Disputes An individual queried about reclaiming Input Tax Credit (ITC) from FY 2017-18, which was mistakenly reversed in FY 2019-20. A respondent clarified that the time limit under Section 16(4) of the CGST Act does not apply to re-availing reversed credit, referencing Rule 37(4). Despite not reversing ITC under Rule 37(4), the individual was advised that the time limit is still non-applicable. Another respondent warned of potential disputes with the tax department due to discrepancies in GSTR-2A for FY 2019-20, suggesting the need for clarity on the reversal reason. Overall, the consensus was that reclaiming ITC is possible but might face departmental challenges.