Time Period For Availement Of ITC

[Mani Ramamurthi]

Dear Experts,

This is regarding GSTR-3B of a tax period is filed after the last date of the availment of ITC in respect of any invoices /Debit note as per Section 16(4) of CGST Act.

We have received a scruity notice for the period 2018-19 in which the department has asked us to pay the availed ITC due to time period limitation by quoting section 16(4) even the said ITC is reflecting in our 2A.

The GSTR-3B returns for the said period has been filed in 2023-24. Is there any scope to defend the department in this regard. Further the said GST number is under Suo moto cancellation.

[KASTURI SETHI]

Dear Querist,

(i) What is the date of cancellation of registration ?

(ii) What circumstances led to suo moto cancellation ?

(iii) Only reflection in 2A does not entitle to avail ITC. Other conditions/parameters are to be complied with.

(iv) Other conditions cannot be ignored.

[Shilpi Jain]

Is it that you have filed your 2018-19 3B late now?

If you have filed GSTR-3B after due date of availing credit for that month then ITC would be denied, unless your registration was cancelled and for that reason you could not file your 3B and avail credit.

AI Summary

Time limit for ITC: late GST return filing generally bars credit unless registration cancellation prevented timely filing. Time bar for Input Tax Credit arises where GST returns claiming credit are filed after the statutory period; mere reflection in Form 2A does not confer entitlement. Late filing of the periodic return generally precludes availment of that credit, but the date and circumstances of registration cancellation - and whether cancellation prevented timely filing - are material to any defence against recovery under the time limitation.