GST expensed out and Eligibility of ITC

[Kaustubh Karandikar]

ITC not claimed in the F.Y. 19 – 20 and the entire amount was expensed out. Subsequently, in September’20, out of this, what was eligible, ITC was claimed on it and the entry passed in F.Y.19 – 20 for expensing out was reversed. Is it in line with the GST Provisions and therefore ITC allowed? In my view, ITC is allowed since entry is reversed subsequently. Views of the experts please.

[SOWMYA CA]

I agree with your view on availing ITC. ITC on inputs is to be availed by September 30th immediately following the financial year and can be claimed. One has to ensure conditions listed in section 16 are fulfilled as applicable.

[CA Hemanth Kumar]

Dear Sir,

Agreed with the views.

Credit can be claimed in Sep month returns fo subseqent year. Ensure that the same was filed within the due date otherwise the department may disallow the credit

AI Summary

Eligibility of Input Tax Credit for GST Claimed Late in September 2020 Under Section 16 Discussed by Experts A discussion on the eligibility of Input Tax Credit (ITC) for GST when it was not claimed in the financial year 2019-2020 and expensed out, but later claimed in September 2020. The initiator believes ITC is allowed since the entry was reversed. Two experts agree, noting ITC can be claimed by September 30th of the following year if conditions in section 16 are met and filed within the due date to avoid disallowance by the department.