Time limit to claim Input Tax Credit on invoices pertaining to F.Y.2017-18

[Ganeshan Kalyani]

Every registered person is entitled to take credit of input tax charged by the supplier on any supply of goods or services or both which are used or intended to be used in the course or furtherance of his business. The input tax credit eligibility is subject to section 17 of CGST Act, 2017 which blocks the credit on entirety or on proportionate basis.

There is time limit provided in the GST law for claiming the credit. A registered person cannot claim input tax credit in respect of any invoice or debit note for the supply of goods or services or both after the due date of filing of GST return for the month of September following the end of the financial year to which such invoice or invoice relating to such debit note pertains or filing of annual return whichever is earlier.

The time limit to claim the credit on the invoice pertaining to the financial year 2017-18 covering period of July 2017 to March 2018 was 20^th October 2018 i.e. the due date of filing return of September 2018 month. Being the financial year 2017-18 is the first year of implementation of GST, there was lack in clarity and understanding the law and its implementation was a bit confusing, the time limit to claim the credit of the said financial year has been increased up to 20^th April 2019 i.e. the due date of filing GST return of March 2019. The said time line has been increased vide Order No. 02/2018-Central Tax dated 31^st December, 2018. Hence, the registered person can claim input tax credit on the invoice pertaining to the financial year 2017-18 up to 20^th April 2019.

Most of the eligible credits would have been claimed by the registered person by 20^th October 2018. However, due to the lack in clarity of the GST law some credits would have been skipped by him to claim within the said timeline. Since, there is time now the registered person should analyse the eligibility and claim the credit. A registered person can also compare their purchase register with the GSTR-2A to ensure that all the credit as uploaded by the supplier are claimed. In case any credit appearing in GSTR-2A is not claimed by him then it can be claimed within the revised time line.

Discussions to this article

[DURGADUTT DUBEY]

If someone has debited the entire amount including GST in P/L account of 17-18 by mistake. But now wants to claim the GST input as the same is appearing in GSTR-2A and is also eligible as per section 17 of CGST Act. What accounting entry should he pass to account for the GST credit in current year accounts ?

Whether debiting of GST Input A/c and crediting the Prior Period Income A/c will be correct in this case ?

[Ganeshan Kalyani]

The GST receivable account to be debited and credit to the corresponding expense account. This is the entry according to my view.