ITC CLAIMED BEYOND TIME LIMIT u/s 16(4)

[MAHTAB KHAN]

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. ??

AI Summary

ITC claimed beyond time limit: late March 2022 ITC triggers recovery, interest, and penalty under GST provisions.
ITC for March 2022 was availed after the Section 16(4) time limit; department issued an SCN proposing recovery under Section 73 with interest under Section 50 and penalty under Section 122. Administrative relief was only extended to earlier years and does not cover FY 2021-22, so the time-bar under Section 16(4) applies; sufficient electronic credit ledger balance after late availment does not negate the initial violation.