TaxTMI 
TaxTMI 
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
ITC CLAIMED AFTER DUE DATE
07 May 2024 
6 Replies 
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Input Tax Credit time limit restricts late claims, permitting credit reversal and interest while higher court review remains pending.
ITC claimed after the statutory cut off for March 2020 returns was disallowed via DRC 01 on the basis that Section 16(4) imposes a time bar for claiming ITC; High Courts have upheld the restriction and a Supreme Court challenge is pending, so current guidance is that remedies are limited though taxpayers may keep matters alive for possible future relief. (AI Summary)
ITC claimed after the statutory cut off for March 2020 returns was disallowed via DRC 01 on the basis that Section 16(4) imposes a time bar for claiming ITC; High Courts have upheld the restriction and a Supreme Court challenge is pending, so current guidance is that remedies are limited though taxpayers may keep matters alive for possible future relief. (AI Summary)