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

Input tax credit time bar under Section 16(4) prevents late GST credit claims; reversal required and relief limited.
Delayed filing of returns caused disqualification of input tax credit under the statutory time bar in Section 16(4); ITC claimed after the relevant cut off must be reversed and tax, interest and penalties addressed. While recovery notices may be challenged and mitigation of interest or penalty sought, the time bar itself ordinarily prevents restoration of the barred credit; timely reporting before the cut off is the operative compliance safeguard.