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.

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.