Introduction
Section 16(4) of CGST Act, 2017 deals with Input Tax Credit Conditions. This section was amended vide Notification No. 18/2022–Central Tax | Dated: 28.09.2022 by giving effect to amendments proposed by Finance Act, 2022.
Section 16(4) Before 18/2022
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.
Section 16(4) After 18/2022
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 thirtieth day of November following the end of financial year to which such invoice or debit note pertains or furnishing of the relevant annual return, whichever is earlier
Changes and interpretations of section 16(4)
This amendment provided a much-needed relief to the taxpayers correcting their input tax credits. sec 16(4)
Earlier time limit for taking input tax credit with respect to invoice or debit notes was due date of furnishing of 3B for the month of September following the end financial year to which such invoice or debit note pertains and other conditions with respect to the annual return is irrelevant, as always annual return due date is after September 3B due date.
Now after amendment, time limit for taking input tax credit with respect to invoice or debit note is 30th Day of November following the end of financial year to which such invoice or debit note pertains.
In earlier, it was very clear that the correction can be done in September or earlier month return and filing should be done within 3B due date of September month.
Following table gives historical time limit under this section
| Year | September 3B due date | Annual return due date | 16(4)-time Limit |
| 2017-18 | 25-10-2018 | 31-01-2020 | 23-04-2019 |
| 2018-19 | 20-10-2019 | 31-12-2020 | 20-10-2019 |
| 2019-20 | (20/22/24)/10/2020 | 31-03-2021 | (20/22/24)/10/2020 |
| 2020-21 | 20/10/2021 | 28-02-2022 | 20/10/2021 |
Now, it is very confusing as it says 30th November without mentioning period of returns and due dates.
In my opinion one can take input tax credit with respect to the previous financial year latest by filing October 3B within 30th November.
Note: While there is no provision to revise the 3B, better you reconcile entire transactions before filing October 2022 3B, even it may attract Interest and late fees till 30.11.2022.
Author Bio
I am working in a shop and I have received a letter from CGST office demand notice for reversal of ITC 16(4) for the year 2021-2022 which I have been taken after the prescribed date 30th November, due to owner’s coved 19 positive it was not possible to maintain the GST protocol and GST Number also suspended Aug’22 to May’23.again it resumed from Last of May’23 till date all monthly sale return has been completed. So what can we do now? We have all purchased Invoice and It is not possible to pay back demand amount. If not possible then the shop will be closed.
I HAVE FILLED FORM 3B DATED 19-12-2019 FOR THE FINANACIAL YEAR 18-19 . ANNUAL RETURNED NOT FILLE TILL DATE DUE TO TURNOVER ONLY FIFTY LAC . DEPARTMENT PASSED ORDER AGAINST ME AND PENALTY ALSO EMPOSED, NOW WHAT SHOULD I DO . PLEASE SUGGEST ME
if supplier filled GSTR 3B before due date but failed to file gstr 1 on time in FY 2018-19. I claimed ITC of that time but now State gst department says that suppler filed gstr 1 after due date so i can not claim ITC. due to which DRC 07 has been issued with interest and penelty with tax amount of said supplier who have filled gstr 1 in jan 2020 of fy 2018-19
I HAVE FILED THE MAR-20 GSTR-3B RETURN ON 27/10/2020 AS AS PER 16(4) ITC IS ALLOWED FOR FILING ON OR BEFORE 20/10/2020. SO, IN THIS CASE, IS THERE ANY NOTIFICATION/AMENDMENT TO SO THAT MAR-20 ITC IS ALLOWABLE?
POSITIVE RESPONSE APPRECIATED.
Section 16 (4) of the CGST Act, 2017 prescribes the following condition for availment of Input Tax Credit: –
16 (4) 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.
As per GSTR-3B Returns filed by you for the period F.Y. 2018-19 you have availed Input Tax Credit to the tune of Rs.15,72,274/- irregularly as detailed below: –
I have filled jan 20 to mar 20 gstr1 on March 23 but i have filled the gstr 3b on time of every month will receiver will get the itc as receiver has taken itc in full
plz guide what can i do to get the itc to supplier
F.Y 2018-19 GSTR 3b
I HAVE FILED THE RETURN FOR THE MONTH OF JUNE 18 TO AUG 18 ON DATED 25.10.2019
SEP 18 FILED ON 04.11.2019
OCT 18 TO MARCH 18 RETURSN FILED ON 11.11.2019
THE ITC WE HAVE AVAILED IS INADMISSIBLE (UNDER sECTION 16(4) OF THE CGST ACT 2017
THE AMMANDMENT IN SECTION 16(4) IS THE LAST DATE OF FILING THE RETURN IS 20.10.2019 ,AGAIN THE GOVT HAS INCREASED THE DUE DATE BY 42 DAYS i.e 30.11.2019 IS THIS TRUE OF FALSE
PLEASE LET US KNOW THE ITC WHICH WE HAVE TAKEN IS ADMISSIBLE OR NOT …
call me 9910880800
F.Y 2018-19 GSTR 3b
I HAVE FILED THE RETURN FOR THE MONTH OF JUNE 18 TO AUG 18 ON DATED 25.10.2019
SEP 18 FILED ON 04.11.2019
OCT 18 TO MARCH 18 RETURSN FILED ON 11.11.2019
THE ITC WE HAVE AVAILED IS INADMISSIBLE (UNDER sECTION 16(4) OF THE CGST ACT 2017
THE AMMANDMENT IN SECTION 16(4) IS THE LAST DATE OF FILING THE RETURN IS 20.10.2019 ,AGAIN THE GOVT HAS INCREASED THE DUE DATE BY 42 DAYS i.e 30.11.2019 IS THIS TRUE OF FALSE
PLEASE LET US KNOW THE ITC WHICH WE HAVE TAKEN IS ADMISSIBLE OR NOT …
GSTR-1 FOR THE 4TH QTR OF F. Y. 2019-20 i.e. JAN, FEB AND MARCH 2020 FILED ON 11/11/2020
IS INPUT TAX CREDIT WILL AVAILABE FOR SERVICE RECEIVER PARTY AND CAN HE GET SET OFF FOR THE SAME
Wheather Section 16(4) crossess the limit of Section 16(2) because the Section 16(2) includes “NOT WITHSTANDING ANYTHING CONTAINED IN THIS SECTION”
nice