Input tax credit

[ANUP BHATTACHARJEE]

Credit is taken in the month itself but return in form 3B is filed after limitation of 16 (4) . What will happen sir?

[Shilpi Jain]

Under gst credit is when taken in the electronic credit ledger by filing GSTR-3B. If that is filed after statutory time limit credit will not be eligible. Will get into litigation

[ANUP BHATTACHARJEE]

What I saw from earlier questions and answers ,will it fetch any positive result?

[KASTURI SETHI]

Availment of ITC is not in consonance with Common Portal System implemented vide Section 146 of CGST Act.

In your books of account (these being statutory records), you have taken ITC well in time, you can hope of getting your substantive right only by way of knocking at the door of High Court .

You must fight. There is no other remedy.

[ANUP BHATTACHARJEE]

Thank u sir

[Ganeshan Kalyani]

Also one need to look into the amount of ITC vs the cost of litigation.

[Shilpi Jain]

That is one big point in which the department has an upper hand and many persons without getting to the Courts, many times pay off amounts which they are not liable also. This is due to the litigation costs involved.

[Shilpi Jain]

It is high time the Government fast tracks the initiative of making GST simple. They should take inputs from trade industry and professionals regarding the provisions which are ambiguous and involve experts to relook at those provisions and bring clarity.

AI Summary

Input tax credit ineligibility when claimed after statutory time limit, leading to litigation and cost benefit considerations.
Belated claiming of Input Tax Credit in the electronic credit ledger by filing GSTR 3B after the statutory time limit (limitation of 16(4)) renders the credit ineligible under the portal-based ITC recognition framework; where books show timely entitlement but the portal does not, the practical remedy is judicial review, weighed against litigation costs, and broader policy reform to clarify ambiguous GST provisions is recommended.