ITC disalowed us/ 16(4) due filled return after cutoff date.

[Alok PaulChoudhury]

Dear Sir,

GST office issued Notice against ITC disalowed us/ 16(4) as the return filled after cutoff date. Now I will submit reply, so pls give a reply letter.

Thanks & Regards

Alok Paul Choudhury

Mobile 9435175939

[KASTURI SETHI]

Not possible on this forum. Your records have to be examined before drafting reply to the SCN.

[Ganeshan Kalyani]

Yes, I agree with Sri Kasturi Sir's view. Reply should cover all the facts of the case. Only after knowing the fact a suitable reply can be prepared. 

[Padmanathan KV]

Pls consult a tax professional. He can prepare you an appropriate on payment of suitable professional fee. 

[Shilpi Jain]

Defending section 16 (4) allegation is a little difficult unless very genuine reasons exist for the late claim.

[Dayakishan Tyagi]

it is not clear from your query whether you claimed ITC of a financial year  after the cut off date in the following year or this objection has been raised by the department on the ground that your supplier filed the returns after the cut off date.

In case you have taken ITC before this date, this provision can not be invoked against you, irrespective of the fact that your supplier filed the relevant returns after the cut off date, as the same applies only when you have taken the ITC after the cut off date. 

[KASTURI SETHI]

Sh.Dayakishan Tyagi Ji,

Your logic is full of substance. I think that the querist has himself filed return after due date.

AI Summary

Input tax credit cut off rule under section 16(4) limits reclaim after due date; defense hinges on timing of claim. The statutory cut off rule bars input tax credit claims made after the prescribed due date; replies to notices must show the date ITC was taken in the recipient's returns and any genuine reasons for late filing. If the recipient claimed ITC before the cut off, disallowance cannot be invoked even if the supplier filed late; if the recipient filed after the cut off, defending the allegation is difficult. Preparation of the reply requires examination of records, sequencing of filings, and may require professional assistance.