ITC availed in contravention of provision of Sec 16(4)

[AKSHAT AGARWAL]

Seeking experts guidance on the forum.

In one of the case, assessee have delayed filed their GSTR-3B for the month of March-21 by 21-12-2021 as well annual return has also been filed much after on 26-04-2024. Now Deptt. have confirmed the demand on account of ITC wrongly availed in terms of provisions of section 16(4) of CGST Act, 2017. Amount of ITC disallowed is substantial.

My question is whether any relief is available on any ground or ITC needs to be reversed by now.

Thanks

AI Summary

Tax Credit Blocked: Late GSTR-3B Filing Leads to Comprehensive Input Tax Credit Disallowance Under Section 16(4) A taxpayer delayed filing GSTR-3B and annual return for March 2021, resulting in disallowance of input tax credit (ITC) under Section 16(4) of CGST Act. The substantial ITC claim was rejected due to missed statutory deadlines. Limited relief options exist, primarily involving ITC reversal, potential penalty reduction, and possible appeal, though legal recourse appears challenging given strict statutory interpretation.