Input tax credit restriction bars post-September claims; taxpayers may only increase declared output tax and pay interest.
Section 16(4) bars claiming input tax credit after the due date for the September summary return or the annual return, and a related administrative clarification treats the summary return as the operative cutoff, preventing post-September rectification of both outward-supply reporting and summary return entries. Revenue-protection provisions nonetheless allow taxpayers to correct by increasing declared output tax and paying additional tax with interest and penalties, so missed credits cannot be recovered by reducing output after the cutoff but can be addressed by declaring higher output liability. (AI Summary)