ITC for the past period

[Kaustubh Karandikar]

Based on GST Intelligence wing show cause notice, GST under reverse charge paid towards import of service from the year 2017 to 2023 in the month of September 2023. Can ITC be availed against this payment made for the past period now?

AI Summary

Can Input Tax Credit be claimed for GST paid under reverse charge for imported services? Section 16(2)(a) discussed. A discussion on whether Input Tax Credit (ITC) can be claimed for GST paid under reverse charge for services imported from 2017 to 2023, paid in September 2023. Participants debated the applicability of Section 16(2)(a) and the necessity of a tax invoice for claiming ITC. It was noted that self-invoices could be issued for such services, allowing ITC claims, but concerns were raised about the timing of invoice issuance and potential denial of ITC due to technicalities. A recent circular clarified that ITC can be claimed in the year the invoice is issued, but interest and penalties may apply for delayed tax payments.