Can Input Tax Credit (ITC) for FY 2019-20 be claimed after September 2020? YES, YOU MAY
Few days ago, I came to know that Confederation of GST Professionals and Industries filed a writ petition before the Hon’ble Bombay High Court for the extension of due date of GSTR-9/GSTR-9C to 31st December 2020. The Petition stated the various problems which are being faced by professionals in view of severe restrictions on public transport and staff attendance of 10% in many places. Petition further argued that CA fraternity has heavy audit responsibilities & because of this mandate, CA fraternity has become “Corona Warriors”.
Yes, this is the fact. We all GST professionals and company people who are taking care of GST compliance are “Corona Warriors”.
This October 2020 is full of due dates under GST law. With very limited resources, limited time and family health issues, we need to observe many GST compliance. Some of them are listed in the below table:
| Compliance | Due Date |
| GSTR-1 for the month of September 2020 | 11th October 2020 |
| GSTR-1 for the quarter July 2020 to September 2020 | 31st October 2020 |
| GSTR-3B for the month of September 2020 | 20th/22nd / 24th October 2020, as the case may be |
| ITC-04 for the quarter July 2020 to September 2020 | 25th October 2020 |
| GSTR-9 / GSTR-9C for FY 2018-19 | 31st October 2020 |
Apart from this, we all GST professionals as well as all company people who are taking care of GST compliance, are going through the pain of GSTR-2A reconciliation for the FY 2019-20. In terms of provisions of section 16(4) of the CGST Act, 2020, pending ITC related to FY 2019-20 can be claimed upto due date of GSTR-3B return for September 2020. Thus, practically speaking, the last date for claiming pending / hold ITC related to FY 2019-20 is 20th / 22nd / 24th October 2020, as the case may be.
I guess this pain is still not sufficient. This is because as per the latest clarification issued by the CBIC vide Circular No. 142/12/2020-GST dated 9th October 2020, ITC for the months from February 2020 to August 2020, if availed as per books, is required to be reconciled with GSTR-2A in terms of rule 36(4) of CGST Rules, 2017 and excess ITC (as compared with 110% of eligible ITC reflected in GSTR-2A for February 2020 to August 2020) is required to be reversed in GSTR-3B for the month of September 2020. Moreover, separate ITC reconciliation for the month of September 2020 is to be done with GSTR-2A before filing of GSTR-3B. It is further clarified that failure to reverse excess claimed ITC for the period from February 2020 to August 2020 would be treated as “availment of ineligible ITC” which means such ineligible ITC would attract interest, if utilised against output GST liability for the respective months (i.e. from February 2020 to August 2020).
Considering the limited resources, health issues, many other restrictions due to this COVID-19 and most importantly, time constraints for availment of pending / hold ITC for the FY 2019-20, I wish to share some of the points for consideration.
While doing reconciliation of ITC with GSTR-2A, there are certain common things which are observed by all GST professionals and tax payers. Such common observations along with few practical suggestions are mention below. This may be useful to safeguard the interest of the company:
1. ITC for FY 2019-20 is on hold because certain suppliers have reported the sale transaction under B2C instead of B2B – I personally feel that this mistake cannot restrict the company from taking ITC. This is because as per section 16(2) of the CGST Act, 2017, there are following four conditions for claiming ITC:
a. ITC is availed on the basis of valid document, which is satisfied.
b. Assessee has received the goods / services, which is satisfied.
c. The supplier has paid GST to the Government, which is satisfied; and
d. The supplier has filed GST return u/s 39 (i.e. GSTR-3B), which is also satisfied.
Since all the four conditions are satisfied, the company can very well claim ITC even if respective purchase invoice is not reflected in GSTR-2A. In such cases, I would strongly suggest that company should obtain a declaration from the respective suppliers by mentioning details of tax invoices and the fact that such tax invoices are inadvertently reported in B2C instead of B2B. This declaration would certainly be one of the strongest documentary evidence for future reference / litigation.
2. ITC for FY 2019-20 is on hold because certain suppliers have wrongly reported GSTIN of the company – even in such case, I personally feel that this mistake cannot restrict the company from taking ITC. This is because as mentioned above, all the four conditions prescribed u/s 16(2) are satisfied. Even in this case, I would suggest to obtain a declaration from the respective suppliers by mentioning details of tax invoices and the fact that wrong reporting of GSTIN of the company.
3. ITC for FY 2019-20 is on hold because certain suppliers have not filed GSTR-1 – even in such case, I personally feel that this mistake cannot restrict the company from taking ITC. This is because even though rule 36(4) of CGST Rules, 2017, restricts ITC to 110% of the eligible ITC reflected in GSTR-2A, it cannot override the provisions of section 16(2) of the CGST Act, 2017. It is settled law that the Rule cannot override the provision of the Act under which the Rule is framed. Therefore, when all the conditions are satisfied u/s 16(2) of the CGST Act, 2017, ITC should be available even though GSTR-1 is not filed. This is subject to litigation or further clarification by the Government.
4. ITC for FY 2019-20 is on hold because certain suppliers have not filed GSTR-3B – GSTR-3B not filed means GST is not paid by the supplier. Since one of the basic conditions prescribed u/s 16(2) is not satisfied, ITC is not available. However, in future, many companies will be fighting on the ground that because of default by the supplier on account of non-payment of GST, ITC should not be denied when the transaction is genuine. I heard that M/s Bharti Telemedia Ltd. has filed a writ petition before the Hon’ble Delhi High Court challenging Section 16(2)(c) [i.e. condition of payment of GST by the supplier]. This writ petition has been admitted by the Hon’ble Delhi High Court which means there is question of law involved for discussion. We are now waiting for outcome of this decision. Based on this, companies may take a call whether to recover ITC amount from the respective supplier or still avail ITC.
After considering the above situations, legal provisions and time constraints for availment of pending / hold ITC related to FY 2019-20, I wish to share one mid-way. The mid-way is to avail all pending / hold ITC for FY 2019-20 in GSTR-3B for September 2020 and reverse the same in the same month. This mid-way is based on the below legal provisions and references:
1. As per section 16(4) of the CGST Act, 2017, restriction is on availment of “fresh credit” and not on availment of “re-credit”. Therefore, once ITC is availed and subsequently reversed, it gives time to the assessee to reconcile and re-avail ITC without any time restriction;
2. As per the Press Release dated 18th October 2018, in para 4, the Government has clarified that the apprehension that input tax credit can be availed only on the basis of reconciliation of between 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. Though this Press Release talks about ITC for FY 2017-18 but the principle remains that exercise of GSTR-2A reconciliation can be done at the later stage also;
3. There may be a situation that some of the suppliers would file GSTR-1 for FY 2019-20 after October 2020 and thus, pending ITC will be reflecting after filing of GSTR-3B for September 2020. Thus, even though the respective tax invoice will be reflected in GSTR-2A (though at later date), the same will not be eligible to claim, which is totally injustice to the taxpayer; and
4. Similar provisions regarding time limit for availment of CENVAT credit was prescribed under Rule 4(1) and 4(7) of Cenvat Credit Rules, 2004. In this connection, the CBIC had clarified vide Circular No. 990/14/2014-CX dated 19th November 2014 that time limit is not applicable in case of “re-credit” cases.
Whether this is the intention of the GST law or loophole in the GST law is the different issue however, considering the time constraint, one can consider this approach. This is just a thought after carefully going through the legal provisions of section 16 of the CGST Act, 2017 and other related provisions. I know there can be other side of thought also and therefore, it is open for discussion and arguments.
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Dear Sir,
We didn’t receive IGST / Input for the period from April 2020 to August, 2020 from Customs Dept, but still used using 2A, so how to get the ITC officially.
regards
Mohan
sir I want to know what is the last date for claiming ITC for fy year 19-20
sir,
we have claim gst itc of 19-20 in gst 3b of mar-20 but mar-20 gst 3b file on 25.11.20 before filling of gstr9. can we avail itc or received notice avail itc after cut off date.
please guide on this point.
thanking you.
FY 20-21 bills input credit available in portal sir, but we are not take that input, how to utilize that input? or apply refund , what way sir, any possibility??
The sale from 1-10-2019 to 31 march gstr3b paid late can party clain ITC
Sir in 2019-2020 my two bill were filled under b2b instead of b2c knw itc was not available to my party. But in 2020_2021 in March gstr -1 we amend both bill and taken in gstr 1 of march 2020_2021 by adding in previous year options of open in my gst we have enter date amount and filled it
Can it will be available to party in financial year 2020-2021 but bill was of year 2019-2020
Plz guide us
I need some clarification about GST, I paid the GST Feb and Mar20 invoice in December 20 due to Covid reasons and as supplied company asking the credit note and can’t avile the Input.
Please confirm they can get input or not
THEY CAN NOT GET INPUT TAX .BECUASE YOU GSTR-1 FILE AFTER SEPT-2020 .
SORRY INPUT GET
Hello Sir,
We have claimed excess ITC in the period of FY 2019-20 and also GSTR-9 not filed yet. How can we reverse ITC
Dear Mr. Manas,
Very fruitful information with explanation provided on one of such critical issue faced by almost all tax payers.
We are availing ITC only to the extent of Invoices available on GSTR-2A for particular month. Missing invoices on GSTR-2A has been debited [GST amt] to suppliers on account of non compliances & ITC not availed by us. In this case, is supplier exercise the refund option under Section 54(8)(e) ?
Further, in GSTR-2B report it shows Ineligible as return filed post annual return.
Is our understanding correct ?
I have Availed balance ITC of 2017-18 in year 2019-20.Now how I should show it in ANNUAL Return of 2019-20. Pl. Reply Urgent
can ITC availed wrongly in 2019-20 can reversed after SEPT-20 ?
I Have Claimed ITC for March 20 in March 20 GSTR3B, Seller party filled his GSTR1 on 2nd January 2021, 3B Has filled in July 20, after filling of his GSTR1, there is in GSTR2B Auto populated for month of Dec.20 is showing ITC Unavailable for march 20 Bills. Then it need to reverse the ITC?
Hello Sir ,
GST ITC for the month Feb 20 wrongly considered
How do I now rectify ?
Feb 20 777077 As per 3B
7593321 As per 2A
8352653 As per Rule36(4) ITC ( 10% )
Kindly help me as soon as possible .
SIR,
COMMISSION KA EXP. LAST YEAR(2019-20) ME BOOK KR DIYA THA KYA JAN.2021 ME GST KA INPUT LE SAKTA HU
Dear sir,
Can we accept (and Take Gst Input) Of our jio partners invoice which that issued by him after 30 Sept.2020 to till date against already paid commission in during f.y.19-20,
For example we paid jio commission to a partner Rs.100000/- as on 31/12/2019 he didn’t issued invoice on that time,
And after he issued invoice against above Commission, Invoice Date dated 31/12/2020 Or till date OF Rs.100000+Gst Amt
can we except and take Gst input on this invoice
Am i suppoosed to reverseITC for FY 2019-20 is on hold because certain suppliers have reported the sale transaction under B2C instead of B2B
Dear Sir,
Can I claim GST ITC FY 2019-20 in this month Dec 2020. please reply sir,
Can I claim of ITC at GSTR-3B from FY 2020-21 to FY 2021-22
Sir agar kisi ka quarterly return jaa rha h aor mai usase purchase krta to kya mai Nov me us bill ki itc le skta hu lekin samne wali party to Jan 20 me apna gstr 1 file kregi please help sir
Dear sir,
Can i Claim previous year 2019-20 IGST in current year 2020-21 ?
we wrongly passed jv in system. please reply asap.
Dear sir. Can I claim Gst ITC for f.y.2019_20. in October 2020 return.please clarify.
Dear sir. Can I claim Gst ITC for f.y.2019_20. in October 2020 return.please clarify.
Dear Sir,
I have a Credit Note for the FY 2019-20 July month which not included in GSTR3B, so now can I take this ITC in the month of October 2020 filing of GSTR 3B
Dear sir,
Can we claimed ITC after the GSTR 3B Due date of September 2020 i.e 26/10/2020..
Regards
Ranjit
Can we hope about any extention and correction in gstr 3b with respect to 2019-20.
Will government allow itc availment till 31st mar from 20th oct due date
Dear sir,
Can we claimed ITC after the GSTR 3B Due date of September 2020 i.e 22/10/2020..
Regards
Apoorva
Dear Sirs
19-20 bills input credit available in portal sir, but we October-20 only we received that bill, can we take that input in October month sir?? any possibility??
Please clarify.
Good work.Thank you .
Sir,
I HAVE A DEBIT NOTE FOR THE F/Y 2019-20 FEBRUARY MONTH WHICH NOT INCLUDED IN GSTR-1, I HAVE FILED GSTR-1 FOR THE QUARTERLY UPTOJULY TO SEPT-20 THEN WHAT I SHOULD FOR ITC OF DEBIT NOTE LIABILITES. I SHOULD DO REVERSAL THAT FEBRUARY DEBIT NOTE ITC OR DRC-03 PAYMENT, CAN I TAKE THIS ITC IN ELIGIBLE ITC IN GSTR-3B COLOUM 4B OR ANY OTHER TREATMENT REQUIRE PLEASE SUGGEST NAY SOLUTION FOR THIS QUERY.
Dear Manan,
Thanks for your clarifications but what about Section 18(2) which says we can take ITC from 1 year to invoice doesn’t it restrict us to reclaim ITC?
Dear Adv. Manas Joshi. Special thanks for your studies and findings of the loop holes in the Act & Rules framed under GST Monster. Sure, your advises shall spare confidence to the tax professionals to avail all pending ITC and to over come the crisis, for the time being, The other side; the challenging one, Reversal of it in the same month- we should do it and place our arguments and facts specifically relating the particular case, well explained. Friends please try, is there any alternative way to overcome this crisis, NOW…….
Dear Manas
This article is very helpful.
Thanks for clear analysis.
Very well articulated.
Thanks a lot
Sir, good article, one observation:
ITC Availment , Reversal and reavailment may be possible only under the circumstances specified in Section 16 (2) (d) of CGST Act. Whether Availment and Reversal proposed in this article, may be done under protest , under information to jurisdictional GST authority ?
Thank you for the clear analysis Manas Ji👍🏼
Good one. You have rendered 2A, a waste. Even otherwise it can not be treated as tax payment proof as the same is prepared on the basis of GSTR-1 and not on GSTR-3B.
You have asked to reverse the credit and take re-credit. But what is the basis on which re-credit can be taken as there is no change in the circumstances. Whether the re-credit will be valid.
In my opinion, this argument of no time limit for RECREDIT may not sail through because the re-credit under section 16(3) is permitted only in a situation where the credit is reversed on account of reversal due to non-payment of consideration and GST within 180 days and permitting recredit on making the payment. When you take the credit in September 2020 and reverse in same month it nullifies the credit availed. To avail the re-credit after September 2020 one needs to substantiate the entitlement. Similarly the argument to take shelter of press release of October 2018 may not be prevent the damage because Rule 36(4) has been mandated after October,2018.
However, one may have stronger arguments for challenging the vires of rule 36(4)- which has in fact already challenged in few High Courts. Section 43A not yet notified. Challenge section 16(4) on account of impossibility to comply with and hence bad in law.
Dear Mr. Joshi,
This article is really helpful. Thank you for your insights and analysis.
Regards,
Anand