ITC ALLOWABLE OR NOT..

[BARUN MUKHERJEE]

Respected experts,

ITC was claimed by the recipient for the month of Jan'19 within due time as per Section 16(4). The supplier was filed their GSTR-3B timely and paid the tax accordingly.. but unfortunately they were not filed their GSTR 1 for that said month timely and filed that GSTR-1 belatedly on 02.02.25. Is the recipient is liable to reverse those ITC..?

AI Summary

Input tax credit entitlement may be preserved where recipient timely claimed credit despite supplier's delayed outward return filing and evidence.
Input tax credit claimed timely by a recipient may remain allowable despite the supplier's late filing of the outward supplies return, provided the recipient met temporal claim requirements and the supplier paid the tax. The recipient should obtain a supplier declaration or accountant's certificate confirming tax payment and document facts contemporaneously to defend against departmental notices and contest any proposed reversal.