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Maximum time limit to avail Input Tax Credit (“ITC”) for financial year 2021-22 [ i.e. 30th November, 2022]

Please note that Section 100 of the Finance Act, 2022 had amended Section 16(4) of the Central Goods and Services Tax Act, 2017 (“CGST Act, 2017”) to extend the period to take ITC. Before the amendment made, Section 16(4) of the CGST Act, 2017 was as under-

“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 debit note pertains or furnishing of the relevant annual return, whichever is earlier.”

However, after the amendment made in Section 16(4) through Finance Act, 2022, the words “due date of furnishing of the return under section 39 for the month of September” was replaced with “Thirtieth day of November”.

Please note that the effect of the said amendment was not notified at that time. However, in exercise of the powers conferred by clause (b) of sub-section (2) of section 1 of the Finance Act, 2022, the Central Government, vide Notification No. 18/2022-Central Tax, dated 28.09.2022, has appointed the 1st day of October, 2022, as the date on which the provisions of sections 100 to 114, except clause (c) of section 110 and section 111, of the said Act shall come into force.

Pursuant to the aforesaid amendment in Section 16(4) of the CGST Act, 2017, a taxable person shall not be entitled to take ITC in respect of any invoice or debit note or supply of goods or services or both, after the 30th day of November following the end of the financial year to which such invoice or debit note pertains or filing of the relevant annual return, whichever is earlier.

As per Section 16(4) of the CGST Act, 2017 the last date to avail ITC for the invoices of a particular financial year would be the due date of filing of

  • 30th November following the end of the relevant financial year or
  • Annual Return u/s 44 of the CGST Act, 2017 for the relevant financial year, whichever is earlier.

To know the maximum time limit to avail ITC, Section 44 of the CGST, Act, 2017 is also important.

Section 44. Annual return.

#(1) Every registered person, other than an Input Service Distributor, a person paying tax under section 51 or section 52, a causal taxable person and a non-resident taxable person, shall furnish an annual return which may include a self-certified reconciliation statement, reconciling the value of supplies declared in the return furnished for the financial year, with the audited annual financial statement for every financial year  electronically, within such time and in such manner as may be prescribed.”

Provided that the Commissioner may, on the recommendations of the Council, by notification, exempt any class of registered persons from filing annual return under this section.

Provided further that nothing contained in this section shall apply to any department of the Central Government or a State Government or a local authority, whose books of account are subject to audit by the Comptroller and Auditor-General of India or an auditor appointed for auditing the accounts of local authorities under any law for the time being in force.”

# Fully substituted by Finance Act, 2021 notified vide Notification No. 29/2021 -Central Tax dated 30th July, 2021 w.e.f. 01.08.2021.

## Further, being power given under the first proviso, the Government has exempted vide Notification No. 10/2022-Central Tax, dated 5th July, 2022 the registered person whose aggregate turnover in the financial year 2021-22 is upto two crore rupees, from filing annual return for the said financial year.

Rule 80. Annual return.

###“(1) Every registered person, other than those referred to in the second proviso to section 44, an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable person, shall furnish an annual return for every financial year as specified under section 44 electronically in FORM GSTR-9 on or before the thirty-first day of December following the end of such financial year through the common portal either directly or through a Facilitation Centre notified by the Commissioner.

### Fully substituted by Notification No. 30/2021 -Central Tax dated 30th July, 2021 w.e.f. 01.08.2021.

By reading the above relevant sections and rules relating thereto, the maximum time period to file ‘Annual Return’ is specified under amended Rule 80 of CGST Rules, 2017 which is 31st Day of December from the end of the financial year and requisite form to file Annual Return is FORM GSTR-9. Therefore, due date of Annual Return (FORM GSTR-9) for the financial year 2021-22 under Section 44 and Rule 80 i.e. 31st December, 2022.

Note:- In the back ground of above, it is submitted that maximum time limit for availing ITC in respect of invoice pertaining to Financial Year 2021-22 is earlier of

1. 30th November following the end of the relevant financial year i.e. 30th November, 2022; or

2. Due date of Annual Return (FORM GSTR-9) under Section 44 i.e. 31st December, 2022.

Further, as per amended Rule 80(3) of CGST Rules, 2021 (Notification No. 30/2021 -Central Tax dated 30th July, 2021 w.e.f. 01.08.2021) every registered person, other than those referred to in the second proviso to section 44, an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable person, whose aggregate turnover during a financial year exceeds five crore rupees, shall also furnish a self-certified reconciliation statement as specified under section 44 in FORM GSTR-9C along with the annual return referred to in sub-rule (1), on or before the thirty-first day of December following the end of such financial year, electronically through the common portal either directly or through a Facilitation Centre notified by the Commissioner.

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Disclaimer: Nothing contained in this document is to be construed as a legal opinion or view of either of the author whatsoever and the content is to be used strictly for informational and educational purposes. While due care has been taken in preparing this article, certain mistakes and omissions may creep in. the author does not accept any liability for any loss or damage of any kind arising out of any inaccurate or incomplete information in this document nor for any actions taken in reliance thereon.

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6 Comments

  1. B C CHAKRA says:

    one invoice date is 28.04.2021. Invoice filed in GST portal in April, 2022.
    Whether the GST credit will be allowed to the receipient or not.

  2. MEENAKSHI AKELLA says:

    Sir, We are Hotel Industry.We have GST Credit from 2019-20, which we have not shown in returns till now. As the Hotel operation starts from Jan 22 we want to show the credit availability in GSTR3B, however, my doubt is GST Credit on capital goods can be availed from 2019 onwards or not. Kindly clarify

  3. Ershadali says:

    Sir ,

    ITC auto-drafted in GSTR-2A during the month [as per PART-A, PART-B](Excluding RCM supplies) was not claimed in 3B Table 4 and the FY is closed as well as Annual retuned is also filed. Is there any possibilities to claim or go for appeal to claim the ITC

  4. N R Sanghrajka says:

    How one can claim ITC FOR F Y 21-22 before 30th November 2022 if he is filing Quarterly return that will fall due for the 3rd quarter after December 2022 ?

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