FY 2018-2019 GST dues paid with current year 2024-2025 ITC

[CABayyaReddy DK]

Sir/Madam,

GST Order was issued under section 73 for the year 2018-2019 for mismatch of ITC and I have accepted & paid the tax portion using financial year 2024-2025 ITC and will be applying for waiver of Interest and penalty under Amnesty Scheme 2024.

Is there any restriction for utilizing current year ITC for past dues. I do not have carry forward of Excess ITC from 2018-2019 till 2023-2024. Please advise.

[Ganeshan Kalyani]

In my view, there is no one-tow-one correlation of ITC. So your claim of ITC to pay off the earlier liability is correct. 

[Sadanand Bulbule]

Dear Sir/madam

Sri.Ganeshan ji has emphatically cleared the issue. Go with it as there are no any restrictions to utilize ITC for any specific period/liability.

[KASTURI SETHI]

Time limit has been prescribed for availing ITC under Section 16 (4) and no time has been prescribed for utilizing the same. I concur with the views of both experts.

[KALLESHAMURTHY MURTHY K.N.]

Sir, 

ITC at credit can be utilised for tax liability for any tax period except in the case of tax payable by cash.

AI Summary

Input tax credit utilization permitted for past GST liabilities, subject to claim time limit and exclusion where tax is payable in cash.
Practitioners concur that Input Tax Credit (ITC) available in a current period may be utilized to discharge earlier GST tax liabilities because there is no required one to one correlation between the period of credit and the period of liability. Section 16(4) creates a time limit for availing ITC but does not limit subsequent utilization, and ITC cannot be used where tax is mandated to be paid by cash.