Arjuna (Fictional Character): Krishna, as you know this is the 1st year of GST and people were not updated about GST, also there had been many changes since its implementation and keeping track of this was difficult. Amidst all these if any credit which is available is left out i.e unclaimed by taxpayers, then what should one do?

Krishna (Fictional Character): Arjuna, In GST Act, provisions in relation to claiming of the unclaimed Input Tax Credit (ITC) are given. As per Sec 16(4)of the CGST Act , “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 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 or furnishing of the relevant annual return, whichever is earlier.”

Arjuna: Krishna, What does this provision mean?

Krishna: Arjuna, In this section it is specified that, if any ITC of a tax invoice remains unclaimed by the taxpayer, he can claim that ITC-

1) Before the due date of filing the return for September month of the next financial year i.e 20th October 2018 . Or

2) Before filing of the relevant annual return i.e 31st December 2018,

Whichever is earlier.

Ex. If a taxpayer forgets to claim ITC in relation to a purchase invoice dated 23rd Dec 2017, then in such case he can claim ITC in relation to this invoice ,any time before filing of annual return or filing any return on or before the return of September month .It is to be noted that this credit can be claimed in any return but before filing September month’s return, As Annual return is not yet made available.

Arjuna: Krishna, what if the taxpayer do not claim the ITC even upto filing September month’s Return?

Krishna: Arjuna, If the unclaimed ITC for the period July, 2017 to March, 2018 has not been claimed by the taxpayer upto filing of the return of September month, then it would lapse i.e to say cannot be claimed . After the return of September, 2018 has been filed, taxpayer would not be able to claim this ITC in any of the return filed afterwards.

Arjuna: Krishna, What the taxpayers need to do before filing the September months return in relation to  unclaimed ITC?

Krishna: Arjuna, Taxpayer need to reconcile the Books of accounts and returns uploaded on the GST portal ,for the financial year 2017-18. Also taxpayer should download and match GSTR 2A for relevant period with their books to find out  unclaimed credit if any. Discrepancies if any, may be adjusted in the return filed before September 2018 or in the September 2018 return.

Arjuna: Krishna, What lesson the taxpayer should take from this?

Krishna: Arjuna, prima facie the provision of Section 16(4) seems to be wrong. Because the annual return is not yet made available. If there is any addition or reduction of ITC over the period, then the best possible suggestion to correct the same is doing so upto filing of the annual return.

As it would become difficult to adjust the unclaimed ITC in the return of the September month. The government must grant time period for this adjustment, at least upto filing of the annual return i.e GST audit report, taking into consideration that GST was a new introduction in the middle of the financial year.

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11 Comments

  1. ATUL KAKKAD says:

    Dealer has IGST as per books of 38 lakhs during 17 18. Excess IGST carried forward after adjusting March admitted tax payable.Now the system generated ITC claim shows amount of IGST at 48 lakhs for 17 18. There is difference of 10 lakhs. This IGST is actual reflected by dealer in his books in April 2018 and ITC taken against tax payable for April 18. How this matter can be reflected in GSTR 9.

  2. Kartik says:

    Can we revise the GST returns. We have already filed the 3B returns for September and now have realized that some of the ITC for the FY 2017-18 have not been claimed. How can we revise the returns now.

  3. JATIN KHURANA says:

    Dear sir,

    Your Blog help me a lot to clarify my doubts.

    now can you please clear my only one doubt i.e i received lots of bill during july-17 to march-18. due to this their is a mismatch ot cgst/igst/sgst in my books & itc shown in gst credit ledger.

    please suggest me clear way how can i claimed the difference amount of cgst/sgst/igst…before filling GSTR-3B of september-18.

  4. ABDUL RAHIMAN says:

    Dear Sir,
    In today’s article i.e. availing credit of any unclaimed ITC by Sept’17 return, I have the doubt that so far GSTR2 is not activated and there are lot of discrepancies in GSTR2A and the invoices raised by the supplier, so unless and until such rectifications are made, ITC available as per GSTR2A and claimed in GSTR3B shall not match. At such circumstances, what is the solution? How can I claim missing invoices?

  5. Santosh Bhattacharya says:

    Dear Sir,
    I am a subscriber of of Taxguru and regularly goes through the contents. In today’s article i.e. availing credit of any unclaimed ITC by Sept’17 return, I have the doubt that so far GSTR2 is not activated and there are lot of discrepancies in GSTR2A and the invoices raised by the supplier, so unless and until such rectifications are made, ITC available as per GSTR2A and claimed in GSTR3B shall not match. At such circumstances, what is the solution? Please advise. Thanks.

  6. MANISH says:

    In which Column of GSTR-3B we have to claim this Unclaimed ITC. I think there is no particular column for this. It means I can say that the ITC I claimed in any return of current year includes ITC of Last year and I have forgot to claim ITC of current year. Thus, Unclaimed ITC is not a big issue.

    1. Anil Gaur says:

      In which Column of GSTR-3B we have to claim this Unclaimed ITC. I think there is no particular column for this. It means I can say that the ITC I claimed in any return of current year includes ITC of Last year and I have forgot to claim ITC of current year. Thus, Unclaimed ITC is not a big issue.

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