Input Tax Credit

[VIGNESH]

Dear Experts. we have claimed ITC amounting to 80,000/- for purchase of goods for the financial year 2018-2019 but the supplier has reflceted the same in his GSTR-1 but has filed the same retrun in January 2020, now the department is asking to pay the tax with interest .is that correct or can we go for appeal? kindly give reply with citations if any.

AI Summary

Company Faces ITC Demand Despite Timely Claim; Experts Suggest Appeal Due to Supplier's Late Filing in 2018-2019 A company claimed an Input Tax Credit (ITC) of 80,000 for the financial year 2018-2019, but the supplier filed the relevant GSTR-1 return late, in January 2020. The tax department is now demanding payment with interest. Experts in the forum suggest that this demand is contestable, as the company met the requirements for claiming ITC within the allowed timeframe, and the supplier's late filing should not affect the claim. They recommend appealing the decision, noting that recent legal provisions do not apply to the period in question. However, the cost of contesting might exceed the demand.