During scrutiny, department has alleged that ITC of ?1,39,878 (CGST Rs. 69,939 + SGST Rs. 69,939) pertaining to FY 2021-22 (March 2022) was wrongly availed because GSTR-3B for March 2022 was filed on 19-12-2022, i.e., after the last date prescribed under Section 16(4) (30th Nov 2022). Department proposes recovery under Section 73, with interest under Section 50 and penalty under Section 122.
Are there any favourable judgments / circulars / relief under Section 16(4) in such cases?
Kindly share your expert views. ??
Delayed GSTR-3B Filing Makes ITC Availment Time-Barred Under Section 16(4), Triggering Recovery, Interest and Penalty A taxpayer availed ITC of Rs. 1,39,878 (CGST/SGST) for March 2022, but filed GSTR-3B on 19-12-2022, beyond the Section 16(4) deadline of 30-11-2022. The department initiated recovery under Section 73 with interest (Section 50) and penalty (Section 122). Contributors state that post-FY 2020-21 no extension/relief exists, and the demand is legally sustainable as the availment itself violates Section 16(4), irrespective of sufficient balance or non-utilization of ITC. One view suggests that if ITC remained unutilized, interest and penalty may not apply, but others emphasize that the contravention is complete on wrongful availment, supported by Supreme Court precedent. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
