ITC on Inward supplies availed in the next Financial Year

[Shri Sasikumar]

Dear Experts,

GST audit is going on for FY 20-21. We have availed before September-2020, the ITC related to FY 2019-20 in the next FY 20-21 to the extent of Rs. 4.5 lakhs. However, GSTR-9 of FY 2019-20 in column 8(C) it was reported only Rs. 3.25 lakhs as per the receipt of the material during FY 19-20 but taken in next FY 20-21. The balance credit of 1.25 lakhs represents the material received in FY 20-21 and hence credit directly availed in FY 20-21. GST department proposed to disallow 1.25 lakhs as it was not reported in GSTR-9 of FY 2019-20. Please advise. Thanks.

AI Summary

ITC of Rs. 1.25 lakhs can be claimed despite GSTR-9 errors if reflected in GSTR-2A/2B by November 30. A query was raised regarding the disallowance of Input Tax Credit (ITC) of Rs. 1.25 lakhs for FY 2019-20, which was availed in FY 2020-21 but not reported in GSTR-9 for FY 2019-20. Experts responded that ITC can still be claimed if it appears in GSTR-2A/2B before November 30 of the subsequent year, despite not being reported in GSTR-9. They emphasized that ITC eligibility is governed by Section 16 of the CGST Act and supported by statutory records, not solely by GSTR-9 reporting. Errors in GSTR-9 should not result in denial of ITC.