Reversal of Input Tax Credit (ITC) allegedly claimed in violation of Section 16(4) of the GST Act

[MAHTAB KHAN]

A notice has been received requiring reversal of Input Tax Credit (ITC) allegedly claimed in violation of Section 16(4) of the GST Act for F.Y 2021-22. I have checked my GST return records and found that GSTR-3B for the month of March 2022 was filed on 07-12-2022. Is there any remedy available to me in this situation?

AI Summary

Taxpayer must reverse Input Tax Credit claimed after Section 16(4) deadline despite filing GSTR-3B late A taxpayer received a notice requiring reversal of Input Tax Credit claimed in violation of Section 16(4) of the GST Act for FY 2021-22. The taxpayer filed GSTR-3B for March 2022 on December 7, 2022, which was beyond the statutory deadline. Legal experts confirmed that Section 16(4) establishes a strict cutoff date of November 30 following the financial year for claiming ITC. The Supreme Court in a relevant case ruled that ITC is merely a rebate requiring meticulous adherence to conditions. No remedy is available for this lapse, and reversal is mandatory, though penalties may not apply if the credit wasn't utilized.