SECTION 16 (4)

[MUKESH KUMAR]

u/s 16(4) under Availed ITC

MAINE FINANCIAL YEAR 2018-19 KA ITC NOV 2020 MONTH KE GSTR 3B MAI ITC CLAIM KIYE HAI MUJHE DEPARTMENT NOTICE KIYA HAI KI MUJHE ISKA ITC NHI MILEGA KYUKI APKO ITC CLAIM KARKE KI PERIOD SEP 2020 KE GSTR-3B KI DUE DATE TAK THI AB MUJHE DRC 07 A GYA HAI AB MUJHE KYA KARNA KARNA CHAIYE

KYA FINANCIAL YEAR 2018-19 KA ITC MUJHE MILEGA PLEASE HELP ME

[Shilpi Jain]

Correct hai. FY 2018-19 ka ITC aapko 20th Oct '19 tak hi claim karna tha. Baad mein liye toh dispute hoga.

[KASTURI SETHI]

The department is correct. ITC availed is time barred.

[Satish Talnikar]

When the Govt allows to file GSTR-3B belatedly, why such ITC can be disallowed? This needs to be litigated. Restriction of Sec 16(4) comes into picture only if GSTR-3B has been filed but ITC has not been availed. Such ITC according to Sec 16(4) can be availed till filing of GSTR-3B of Sep of the succeeding FY. If 3B itself has not been filed, then such restriction cannot be applied.

Regards!

[KASTURI SETHI]

Sh. Satish Talnikar Ji,

We observe that sometimes registered persons do not file returns for two years or three years or four years or more. Then what will happen ? Time restriction is justified. Such time limit has been in force since the year 1986, when modvat credit facility was introduced. Time limit is required for safeguarding revenue. Govt. cannot keep track on those who misuse this facility by taking credit twice on the same invoice.

AI Summary

Input tax credit time bar under Section 16(4): late ITC claims may be disallowed despite belated return filings.
Section 16(4) limits when input tax credit may be availed and ITC claimed for FY 2018-19 in a November 2020 GSTR 3B was notified as time barred; most advisers view the claim as disallowable under the statutory time restriction, while an alternative argument suggests belated GSTR 3B filing could warrant litigation against such disallowance.