Time Limit for Claiming Input Tax Credit (ITC) [Section 16(4) of CGST Act]

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....hichever is earlier of (a) or (b). • From 01-01-2021 to 30.09.2022 [ Amended vide Finance Act, 2020 ] • A registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after the a) due date of furnishing of the return under section 39 for the month of September, following the end of financial year to which such invoice or debit note pertains, or b) furnishing of the relevant annual return whichever is earlier of (a) or (b). • From 01.10.2022 [ Amended vide Finance Act, 2022 ] • A registered person shall not be entitled to take input tax credit in respe....

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....lying invoice. Clarification:-  w.e.f. 01.01.2021, in case of debit notes, the date of issuance of debit note (not the date of underlying invoice) shall determine the relevant financial year for the purpose of section 16(4) of the CGST Act.  • Issue 2:- Whether any availment of input tax credit, on or after 01.01.2021, in respect of debit notes issued either prior to or after 01.01.2021, will be governed by the provisions of the amended section 16(4), or the amended provision will be applicable only in respect of the debit notes issued after 01.01.2021? Clarification:- The availment of ITC on debit notes in respect of amended provision shall be applicable from 01.01....

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....er. 2. Clarification on time limit for the availment of ITC under section 16(4), specifically in relation to RCM supplies received from unregistered persons [Circular No. 211/5/2024-GST dated 26.06.2024 ] • it is clarified that in cases of supplies received from unregistered suppliers, where tax has to be paid by the recipient under reverse charge mechanism (RCM) and where invoice is to be issued by the recipient of the supplies in accordance with section 31(3)(f) of CGST Act, the relevant financial year for calculation of time limit for availment of input tax credit under the provisions of section 16(4) of CGST Act will be the financial year in which the invoice has been issued by the....