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 eligibility: omission from the annual return does not bar credit if timely claimed and supported in returns and records.
ITC for supplies received in one financial year but availed in the next depends on eligibility under Section 16 and on timely claim in periodic returns and corroborative entries in supplier records (GSTR-2A/2B); omission from Table 8(C) of GSTR-9 alone does not justify denial if books of account and GSTR-3B/GSTR-2A/2B show the credit within statutory time limits.