TaxTMI 
TaxTMI 
ITC availability on tax component paid under section 73
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....TC availability on tax component paid under section 73<br> Query (Issue) Started By: - Ramanathan Seshan Dated:- 21-3-2025 Last Reply Date:- 29-4-2025 Goods and Services Tax - GST<br>Got 6 Replies<br>GST<br>Dear Experts, I am reaching out to seek your guidance regarding the Input Tax Credit (ITC) on the tax component paid under section 73. Specifically, I would like to understand whether it is p....
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....ermissible to avail of ITC of the tax component when payment is made through DRC-03 or DRC-07 ? If it can be availed what is the time limit of utilizing so? Upon perusal of Rule 36(4), I did not find any explicit restrictions concerning this matter, which raises my query further. Regards, S Ram Reply By KASTURI SETHI: The Reply: (i) There is no time limit to utilise ITC. Restriction is....
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.... imposed on availing ITC as per Section 16 (4). (ii) See Section 17 (5) (i). ITC is not blocked for Section 73. It is blocked for any order passed under Section 74, 129 & 130. Reply By Ramanathan Seshan: The Reply: Dear Sethi-sir, Thanks for your swift response. Does it mean that tax component of the demand raised u/s Section 73 for FY 19-20 cannot be availed for the current year owing t....
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....o restriction in Sec 16(4). In case, it can be utilized, can we avail in the next month 3B set off ? Regards, S Ram Reply By Shilpi Jain: The Reply: Tax paid u/s 73 is not a blocked credit u/s 17(5). Need further facts on your query. Are you paying this tax under RCM? Reply By Ramanathan Seshan: The Reply: Dear Shilpi mam, Thanks for your swift response. The DRC-07 (Section 73) ord....
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....er is for the FY 20-21 which was issued in Feb 2025. Regards, S Ram Reply By Shilpi Jain: The Reply: If its your output tax liability that you are paying u/s 73 then where isthe question of taking credit? Reply By Ramanathan Seshan: The Reply: Dear Shilpi-mam, In case of short payment ? Regards, S ram<br> Discussion Forum - Knowledge Sharing ....