Govt. vide Notification No. 18/2022-Central Tax dated 28.09.2022 appoints 1st October, 2022, as the date on which the provisions of sections 100 of the Finance Act,2022 shall come into force.
As per Section 100(b) of the Finance Act, 2022, in section 16(4) of the CGST Act, 2017, for the words “due date of furnishing of the return u/s 39 for the month of September”, the words “thirtieth day of November” shall be substituted.
Amended 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 30th November following the end of FY to which such invoice or debit note pertains or furnishing of the relevant annual return, whichever is earlier.
In simple words, time limit for claiming ITC in respect of Invoices/Debit notes: 30th November of next FY OR Date of filing of Annual return (GSTR 9), whichever is earlier.
Govt. has extended the time limit for claiming ITC by 41 days (i.e, from 20th October of next FY to 30th November of next FY)
Issue: ITC can be availed by registered person in Table 4 of GSTR-3B of a tax period. Question is that in which tax period’s GSTR-3B, a registered persons can claim ITC after this amendment.
For monthly return filers: For monthly return filers, whether it is GSTR-3B of November’s month (i.e, 20th December) or GTSR-3B of October’s month (i.e, 20th November).
By plain reading of amended Section 16(4), one can conclude that for monthly return filers last date for availing ITC will be 20th November of next FY because last date to avail ITC is 30th November and after that registered person can not avail ITC. ITC can be availed only in October’s month GSTR-3B i.e, 20th November.
If this is the case then practically extension in the time limit for claiming ITC is of 31 days (i.e, from 20th October of next FY to 20th November of next FY) and not of 41 days.
One can also argue that for monthly return filers last date for availing ITC will be 20th December of next FY because it is not possible to avail ITC as on 30th November. So, registered person can avail ITC in GSTR-3B of November’s month i.e, 20th December of the next FY.
My Analysis: As per me, a registered person can avail ITC only upto 20th November of the next FY i.e, in October’s month GSTR-3B. Availing ITC in November’s month GSTR-3B i.e, 20th December can invite notices from the GST department which lead to litigations.
A clarification is required on the same by the Govt. Till then it’s better and safer to avail ITC in October’s month GSTR-3B only.
For quarterly return filers: For quarterly return filers, this issue is much bigger, whether it is GSTR-3B of September quarter (i.e, 22nd/24th October, as the case may be) or GTSR-3B of December quarter (i.e, 22nd/24th January, as the case may be).
As per amended Section 16(4), it is clear that for quarterly return filers last date for availing ITC will be same as earlier i.e, 22nd/24th October of next FY because last date to avail ITC is 30th November and after that registered person can not avail ITC. ITC can be availed only in September’s quarter GSTR-3B i.e, 22nd/24th October.
Practically there is no extension in the time limit for claiming ITC for quarterly return filers because after September month’s quarter GSTR- 3B, GTSR-3B of December quarter will be filed on 22nd/24th January, which is far beyond 30th November, 2022.
One cannot argue that for quarterly return filers last date for availing ITC will be GTSR-3B of December quarter i.e, 22nd/24th January of next FY.
My Analysis: As per me, for quarterly return filers there is no change in ITC availement last date. A much-needed clarification is required on the same by the Govt. for quarterly return filers, otherwise there is no benefit of this time limit extension for them.
Author Bio
Hello Sir,
Here Annual Return means GSTR 9 not Income Tax Return.
Sir
Due date for availing ITC is Next year 30th November or Date of filing of ANNUAL RETURN whichever is earlier.
The words ANNUAL RETURN here means GST ANNUAL RETURN or income Tax Return.
If it means GST ANNUAL RETURN , it is well and good.
If it means ITR FILED DATE, then a question comes
For persons who need not get their books audited, ITR Due date is 31st July
If their books get audited, Due date if 30th November.
In this case, due date for Availing GST ITC for 31st July ITR due date assessees, is 31st July or 30th November.
Please guide me.
THanks and Regards
– V. SUKHAVANA VIDHYA