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

Input tax credit eligibility: claimable after reversal of expense if statutory conditions met and timely return filed.
ITC expensed in the earlier financial year may be claimed later if the expensing entry is reversed and the taxpayer satisfies the eligibility conditions for credit; the claim must be made in the return for the month of reversal and within the prescribed deadline, otherwise the credit may be disallowed.