ITC CLAIMED AFTER DUE DATE

[KAMAL SETHI]

One of my clients filed GSTR-3B for March 2020 on October 31st, 2020. Subsequently, received DRC-01 to reverse the claimed credit along with interest. This action was taken in accordance with the provisions under section 16(4), as the Input Tax Credit (ITC) can only be claimed up to October 22nd, 2020. Could you please provide guidance on this matter

AI Summary

Supreme Court to Review Late ITC Claim Reversal Under Section 16(4) of the CGST Act; Relief Uncertain A client filed their GSTR-3B for March 2020 on October 31, 2020, and received a DRC-01 to reverse the claimed Input Tax Credit (ITC) with interest, as ITC claims were due by October 22, 2020, per Section 16(4) of the CGST Act. The issue is pending before the Supreme Court, with previous validation by several High Courts. One participant suggests maintaining the issue in some forum for potential relief if favorable judgments or policy changes occur. Historically, time restrictions on credit claims have been enforced to prevent misuse, making favorable outcomes uncertain.