ineligible ITC-supplier uploaded invoices after 16(4) due date

[SUSHIL BANSAL]

Dear experts,

my client received notice for FY 2018-19 for 'ineligible ITC as per section 16(2) (c) on purchase invoices uploaded by supplier in GSTR-1 filed after last date of availment as per proviso to section 16(4)' .

As per my understanding to claim ITC the compliance of Section 16(4) is on the recepient not on the supplier & if such compliance is required by supplier part also then recepient should get benefit of Circular No. 183/15/2022.

Plz guide.

[KASTURI SETHI]

In this scenario, most of the case laws are in favour of Revenue. However, in my opinion, the issue is worth fighting in the light of the Board's Circular No.183/15/2022.

There is a niche for you and the noticee in this issue/case. You must go ahead in this direction.

[KALLESHAMURTHY MURTHY K.N.]

Dear Sir,

In my view, it is not possible to file GSTR-1 after the due date for availing ITC. Circular 183 stipulates for tax deposited by the Suppliers but missing in the appearance of GSTR-2A and after clarifying the same, ITC availment is allowed. In case, ITC is reversed by the Taxpayer, but the supplier has deposited the tax after the due date along with interest, the Taxpayer can move to get it back the reversed ITC, from the department with interest paid since there was a double payment.

[Shilpi Jain]

Credit should not be denied to the recipient as far as he has availed the credit in time. Also for the period 2018-19 it can be argued that the condition of appearance in GSTR-2A does not exist in the Act and hence not requried to be complied.

Department cannot enrich itself by collecting tax and not giving credit to the recipient.

[Padmanathan KV]

Has your client availed ITC within Section 16(4) time limit? 

AI Summary

Ineligible ITC due to late supplier filings: claimant may invoke circular relief when supplier later deposits tax, enabling restoration. Allegations arose that ITC was ineligible because supplier invoices were uploaded in GSTR-1 after the section 16(4) availment deadline. The core issue is whether the timing condition is a recipient-only obligation or dependent on supplier filing. Board Circular No.183/15/2022 may permit recovery of reversed ITC or restoration where suppliers later deposit tax and reconciliation supports the claim. Case law largely supports revenue positions, but taxpayers can argue that GSTR 2A appearance was not a statutory prerequisite for 2018-19 and assert that the department must not retain tax while denying rightful credit.