Section 16(4)

[Komal Agarwal]

GSTR-1 and GSTR-3B from June 2018 to March 2019 filed in January 2020. SCN U/s 73 issued by department indicating violation of section 16(4) of CGST Act, as the last date for claiming the ITC for FY 2018-19 was 20/10/2019 (Sept-2019 3B return file due date). Department SCN is for reversal/payment of ITC claimed of Rs 9.46 lac during the above period plus applicable interest. Presently, the credit ledger balance is nil.

Department personal is not ready to consider our claim of ITC. Is there any case law in our favour. Is any other remedy available ?

Thanks

AI Summary

Input tax credit time limit challenged as extended by notifications and council recommendation allowing late claims through amended rules.
A show-cause notice demands reversal of ITC claimed for June 2018-March 2019 on the ground that the statutory time-limit to avail ITC had expired. Counter-arguments assert executive notifications extended return due dates for initial GST years so the claimant filed within permitted time, and that return-filing continuity and subsequent annual return filings mean the cut-off cannot precede actual filing dates. A GST Council recommendation to retrospectively deem an extended cut-off for initial years is noted but awaits formal legal effect.