CBIC released a Press Release on 18.10.2018 stating last date to avail input tax credit in respect of invoices or debit notes relating to such invoices pertaining to period from July, 2017 to March, 2018.
1. What is the law for restricting availment of Input Tax Credit?
As per section 16 (4) of the CGST Act, 2017, a registered person shall not be entitled to take ITC in respect of any invoice or debit note for supply of goods or services or both after the 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 invoice relating to such debit note pertains (hereinafter referred to as “the said invoices”) or furnishing of the relevant annual return, whichever is earlier.
2. What was the last date to avail ITC for the FY 2017-18?
Till the issuance of this Press Release, the last date for availing ITC in relation to the said invoices issued by the corresponding supplier(s) during the period from July, 2017 to March, 2018 is the last date for the filing of such return for the month of September, 2018 i.e. 20th October, 2018. Although, it is due date of GSTR-3B for Mar’2019, i.e. 23 rd April 2019, (Extended via Notification No. 19/2019 - Central Tax dated 22-4-2019, w.e.f. 20-4-2019].
3. What is clarified by way of this Press Release tax?
It is clarified that the furnishing of outward details in FORM GSTR-1 by the corresponding supplier(s) and the facility to view the same in FORM GSTR-2A by the recipient is in the nature of taxpayer facilitation and does not impact the ability of the taxpayer to avail ITC on self- assessment basis in consonance with the provisions of section 16 of the Act. The apprehension that ITC can be availed only on the basis of reconciliation between FORM GSTR-2A and FORM GSTR-3B conducted before the due date for filing of return in FORM GSTR-3B for the month of September, 2018 is unfounded as the same exercise can be done thereafter also.
4. What conclusion can be drawn from this Press Release and how taxpayer can take the benefit of this Press Release?
This Press Release is in the benefit of the taxpayer. It simply states that the APPREHENSION that ITC can be availed only on the basis of reconciliation between FORM GSTR-2A and FORM GSTR-3B for the month, which is the due date or availing ITC pertaining to previous year and the same reconciliation exercise can be done thereafter also. This Press Release is issued on 18.10.2018 w.e.f. July’2017 and it clearly states that for the period July’2017 to March’2018.
Meaning thereby, before the issuance of SPECIFIC NOTIFICATION via Notification No. 49/2019-Central Tax Dated 9th October, 2019 by introduction of Rule 36(4), this Press Release shall remain valid. So till the issuance of Notification No. 49/2019-Central Tax, taxpayer can claim the ITC in GSTR-3B, even if the invoice is reflecting after the date of claiming ITC. This shall act as a big relief to taxpayer as it will help in allowance of claiming ITC alongwith saving Interest.
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