Error in GST Annual Return

[VIGNESH]

Sir, we have come across a case where the dealer has booked purchase for the goods in 15.04.2019 but the bill shows 12.02.2019, as the goods were received by him on 15.04.2019 (proof of delivery available) he has posted in his books on the date. (2 different financial years are involved) , while filing GSTR-9 for 31.03.2019 he has not shown ITC as c/fd to next year instead he left the difference amount as such and for 31.03.2020 he has claimed excess amount available. now the department is asking to pay the Excess ITC claimed in 31.03.2020. is there any chances or provisions to establish as Procedural Lapse or he has to admit and pay taxes.

[Ganeshan Kalyani]

Sir, this is a procedural lapse and you need to explain the officer about the fact.

[Shilpi Jain]

Has he availed credit on 31.3.20?

[Shilpi Jain]

U/s 16(4) the credit availing due date is linked to the invoice date. So this credit should have been availed by 20.10.2019.

[VIGNESH]

Yes mdm, we have availed and utilized the credit available before 31st August

[Mr Rao]

Dear querist,

Agreed with expert. The ITC should have been availed by you by 20.10.2019. If that is the case, there is no dispute. If you have availed after 20.10.2019, then the dispute arises and department has a valid point.

AI Summary

Dealer Faces ITC Repayment for Claiming Excess Credit in GSTR-9 Due to Invoice Date Discrepancy and Missed Deadline. A dealer recorded a purchase on April 15, 2019, although the invoice was dated February 12, 2019, resulting in a discrepancy across two financial years. When filing the GST annual return (GSTR-9) for March 31, 2019, the dealer did not carry forward the Input Tax Credit (ITC) to the next year, instead claiming an excess amount for March 31, 2020. The tax department now demands repayment of the excess ITC claimed. Respondents suggest this is a procedural lapse and emphasize the importance of adhering to the credit availing deadline of October 20, 2019, linked to the invoice date.