TaxTMI 
TaxTMI 
ITC CLAIMED BEYOND TIME LIMIT u/s 16(4)
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....TC CLAIMED BEYOND TIME LIMIT u/s 16(4)<br> Query (Issue) Started By: - MAHTAB KHAN Dated:- 2-12-2025 Last Reply Date:- 6-12-2025 Goods and Services Tax - GST<br>Got 10 Replies<br>GST<br>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.....
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....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. ?? Reply By Sadanand Bulbule: The Reply: Refer CBIC Circular No. 237/31/2024-GST dated ....
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....15/10/2024 Reply By KASTURI SETHI: The Reply: Relief/extension was granted up to 20-21 only. Thereafter, no such extension was granted. The departments stand is correct. Reply By Sadanand Bulbule: The Reply: Dear Sirji I welcome your reply. Reply By KASTURI SETHI: The Reply: Dear Sir Ji, A huge thank you for your stamp of approval. Reply By YAGAY andSUN: The Reply: Given your facts....
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.... for FY 2021-22, late GSTR-3B (19-Dec-22), and a flat SCN under Section 73 + interest + penalty, the chances of getting favourable judicial relief are quite limited. The statutory time-limit under Section 16(4) remains binding, and the "retroactive relief" under Section 16(5)/(6) does not extend to FY 2021-22. The assessment demand appears sustainable. Reply By MAHTAB KHAN: The Reply: Thank....
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.... you everyone. In this case ITC was never used. Credit ledger balance always above the ITC claimed for the said period. In my opinion interest and penalty can not be demanded! Reply By KASTURI SETHI: The Reply: Dear Querist, The issue of having sufficient balance in ECL is not in picture here at all. Section 16(4) has been violated in this scenario. The issuance of SCN is certain. ....
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.... Reply By KASTURI SETHI: The Reply: First step is in the wrong de jure. Taking ITC is not in letter and spirit of GST laws. Hence TAKING ITC is being challenged by the department. Having sufficient balance in ECL is the next step. We cannot resort to "Next Step" in view of wrong entry at the first stage/step. Reply By Shilpi Jain: The Reply: In case you have sufficie....
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....nt ITC balance since the late availment of credit till reversal no interest and penalty would be liable Reply By KASTURI SETHI: The Reply: In the given situation, the offence has been committed, may be unintentionally. This fact cannot be denied. The issue stands decided by the Hon'ble Supreme Court.<br> Discussion Forum - Knowledge Sharing ....