Advertently or inadvertently, people failed to appreciate the provision of Section 16(4) of the CGST Act, while filing their GSTR-3B late.

GST Department has started issuing notices to taxpayers stating that taxpayer was not allowed to avail input of invoices or debit note issued to them and is asking to pay amount equivalent to tax paid using such inadmissible credit along with applicable interest.

To be more specific, Section 16(4) of the CGST act says “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.”

Form GSTR-3B- Not Filed

Going by these lines it can be clarified that, if a taxpayer is filing GSTR-3B for any month of a particular F.Y. after due date of filing return for the month of September of the following year, credit shall not be available for invoices or debit notes received by them.

So, for GSTR-3B filed for F.Y. 2017-18 after 30th April, 2019 and for F.Y. 2018-19 after 20th October, 2019 GST Credit shall not be available.

I hope this write up will help you get insight of this topic.

If you have any question or suggestions with regard to this topic; feel free to ask/ give feedback.

Author Bio

Qualification: CA in Practice
Company: LBS & Co.
Location: Gurgaon, Haryana, IN
Member Since: 07 Feb 2020 | Total Posts: 3

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January 2021