ITC on freight

[AMIT BATHAM]

Honorable colleagues, one of my clients paid for freight in 2017–18, but he failed to pay the GST. The department has now sent him a notice about the GST on the freight he paid for in 2017–18. My inquiry is whether he can claim the ITC in his current period return if he pays now, following the notice served under Section 73. In my view, he can claim because as per sec 16 (3) no ITC availed in respect of any tax that has been paid in pursuance of any order where any demand has been confirmed on account of fraud or will full misstatement or suppression of facts

AI Summary

Debate Over Claiming Input Tax Credit for 2017-18 Freight GST Payments Under Section 16(4) of CGST Act A client who paid freight in 2017-18 without paying GST received a notice from the tax department. The query is whether the client can claim Input Tax Credit (ITC) in the current period if he pays the GST now. Responses highlight the time limitation under Section 16(4) of the CGST Act, which typically restricts ITC claims for past periods. However, there is debate over whether ITC can be claimed for reverse charge mechanism (RCM) payments made on self-invoices issued in 2023-24, with some experts suggesting it is possible if certain conditions are met. The discussion includes various interpretations and potential legal implications.