TaxTMI 
TaxTMI 
Reversal of Input Tax Credit (ITC) allegedly claimed in violation of Section 16(4) of the GST Act
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....eversal of Input Tax Credit (ITC) allegedly claimed in violation of Section 16(4) of the GST Act<br> Query (Issue) Started By: - MAHTAB KHAN Dated:- 7-7-2025 Last Reply Date:- 7-7-2025 Goods and Services Tax - GST<br>Got 2 Replies<br>GST<br>A notice has been received requiring reversal of Input Tax Credit (ITC) allegedly claimed in violation of Section 16(4) of the GST Act for F.Y 2021-22. I ....
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....have checked my GST return records and found that GSTR-3B for the month of March 2022 was filed on 07-12-2022. Is there any remedy available to me in this situation? Reply By Sadanand Bulbule: The Reply: Section 16 [4] of the CGST Act reads as under: (4) 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 ....
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....both after the thirtieth day of November following the end of financial year to which such invoice or debit note pertains or furnishing of the relevant annual return, whichever is earlier. So the cut off date to claim ITC is very strict and generally the judicial courts may not support such lapse. Reversal of ITC is mandatory. No penalty is attracted if such ITC is not utilised, though inter....
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....est may stiil apply. Reply By Raam Srinivasan Swaminathan Kalpathi: The Reply: On and after FY 2021-22 ITC availing timeline has to be adhered to as per Sec.16(4) and there is no way out. Kindly note that SC in case of ALD Automotive had firmly enunciated that ITC is only a rebate, benefit and concession to the RTP and conditions for availing ITC must be meticulously adhered to.<br> Discussion F....
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