ITC Eligibility in case of GST Return of March,2020 filed in December,2020.

[Lav Prajapati]

Whether GST Input claimed in March, 2020 GSTR-3B is allowed, if the same has been filed on 30th Decemeber,2020 ? (Considering the COVID-19 Situations & relaxations provided).

[KASTURI SETHI]

Time limit was not extended for this purpose by the Supreme Court and Govt.

[Raam Srinivasan Swaminathan Kalpathi]

There is no way department will allow ITC credit beyond due date provided u/s.16(4). Nonetheless, if the situation is extenuating then you may try filing a writ under Article 226.  Please see if this case law is useful, viz. in the case of Kavin HP Gas - 2023 (12) TMI 1051 - MADRAS HIGH COURT. 

[KASTURI SETHI]

Article 226 is a panacea, if the High Court or Supreme Court finds the case fit. But this channel is very costly and time consuming. There is no 100 % certainty. There are cases where the High Court or Supreme Court refused the benefit of Article 226.

The Apex Court and Govt. both are very very strict regarding time bar limit under Section 16(4) of CGST Act, especially, keeping in view frauds in availing ITC/Cenvat Credit in pre-GST era and post GST regime.

One should be pro-active.

[Ganeshan Kalyani]

I agree with the view of the expert.

[Raghunandhaanan rvi]

Thank you Experts for your valuable inputs 

[Padmanathan KV]

If the ITC involved is huge, you can try litigate.

One possible argument that is being taken is that ITC is to be taken in Books maintained under section 35 and only reporting is done in GSTR-3B.

Also what was the reason for delay? was it because the cash component could not be arranged? In that case one can take a stand that though Law does not mandate payment of cash to file GSTR-3B, portal is restricting it. Reliance may be placed on Madras HC decision in Kavin HP - 2023 (12) TMI 1051 - MADRAS HIGH COURT but being considerate of the facts and circumstances in that case.

[Lav Prajapati]

Thank you Experts for your valuable directions

AI Summary

Time bar for Input Tax Credit prevents late claims; exceptional judicial relief may be sought where delays are extenuating. Claiming Input Tax Credit for March 2020 filed in December 2020 is constrained by the statutory time limit for ITC, which was not generally extended; administrative allowance beyond the prescribed period is unlikely. Exceptional judicial relief may be pursued where facts are extenuating, with possible arguments that ITC is recorded in legally maintained books while GSTR 3B is merely reporting, and that portal restrictions or payment difficulties caused delays-however, success depends on case specifics and is uncertain.