Invalid ITC under Sec 16(4) FY 2021-22

[DURAI RAJ]

for the year 2021-22 GSTR-3B Filled on  21.04.2023 after the due date actual date is 30.11.2022 department issued notice  Invalid ITC under Sec 16(4) any possible solution to rectify this

[KASTURI SETHI]

You are hoping against hope.

[Shilpi Jain]

Is this ITC pertaining to an RCM liability?

[DURAI RAJ]

Not RCM Liability 

[Shilpi Jain]

Any reason for late filing of return? Say suspension of registration?

If not, difficult to claim credit.

AI Summary

Late GSTR-3B Filing Disallows Input Tax Credit Claim Under Section 16(4) of GST Act A taxpayer filed the GSTR-3B return for the financial year 2021-22 after the due date, leading the tax department to issue a notice for invalid input tax credit under Section 16(4) of the GST Act. The delay in filing, without valid reasons such as suspension of registration or applicability to reverse charge mechanism, makes it difficult to claim the credit. The discussion suggests limited options for rectification once the deadline has passed and the credit is disallowed due to late filing.