input claim, Goods and Services Tax - GST

[mathur ramachandran]

Sir,

My corporate assessee is filing quarterly returns and their annual turnover for Fy 22-23 is only 5041233/- - They have omitted to claim input credit of 19784.90 for the quarter ending 30.9.22 – I understand that they are exempted from filing annual return for the fy 22-23-

My query is whether the said input for the period Q2 of FY 22-23 can be claimed now before 30.11.23 – If yes, can it be claimed in the GSTR-3B for October 23 and also please advise me as to the procedure for claiming it

Posts / Replies

[Padmanathan Kollengode]

Greetings MSR sir,

As per section 16(4) of the Act, 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.

Therefore, the said credit pertaining to FY 22-23 can be claimed in October 2023 GSTR-3B to be filed before 30-11-2023 (assuming annual return for FY 22-23 is not filed yet).

[KASTURI SETHI]

Law is very much clear. The due date, '30 th Nov.' has been substituted w.e.f. 1.10.22.

I concur with the views of Sh.Padmanathan Kollengode Ji.

[SANTOSH PATIL]

you can avail ITC Till 30th nov 2023, but since you have opted for quarterly filing option you will have to change mode from quarterly to monthly, if you opt for monthly filing now protal will allow you to change mode from quaterly to monthly from 1st jan onwards. if your september returns are pending than the same can be availed till nov 23. my personal opnion

[Padmanathan Kollengode]

Dear MSR sir,

Regarding the second part of your question "If yes, can it be claimed in the GSTR 3B for October 23 and also please advise me as to the procedure for claiming it"

The said credit of Rs. 19784.90 has to be added to the credit of current month reported in Table 4A5 of GSTR-3B.

Pls be aware that new Rule 88D, reads as under:

(1) Where the amount of input tax credit availed by a registered person in the return for a tax period or periods furnished by him in FORM GSTR-3B exceeds the input tax credit available to such person in accordance with the auto-generated statement containing the details of input tax credit in FORM GSTR-2B in respect of the said tax period or periods, as the case may be, by such amount and such percentage, as may be recommended by the Council, the said registered person shall be intimated of such difference in Part A of FORM GST DRC-01C, electronically on the common portal, and a copy of such intimation shall also be sent to his e-mail address provided at the time of registration or as amended from time to time, highlighting the said difference and directing him to—

(a) pay an amount equal to the excess input tax credit availed in the said FORM GSTR-3B, along with interest payable under section 50, through FORM GST DRC-03, or

(b) explain the reasons for the aforesaid difference in input tax credit on the common portal, within a period of seven days.

(2) The registered person referred to sub-rule (1) shall, upon receipt of the intimation referred to in the said sub-rule, either,

(a) pay an amount equal to the excess input tax credit, as specified in Part A of FORM GST DRC-01C, fully or partially, along with interest payable under section 50, through FORM GST DRC-03 and furnish the details thereof in Part B of FORM GST DRC-01C, electronically on the common portal, or

(b) furnish a reply, electronically on the common portal, incorporating reasons in respect of the amount of excess input tax credit that has still remained to be paid, if any, in Part B of FORM GST DRC-01C, within the period specified in the said sub-rule.

(3) Where any amount specified in the intimation referred to in sub-rule (1) remains to be paid within the period specified in the said sub-rule and where no explanation or reason is furnished by the registered person in default or where the explanation or reason furnished by such person is not found to be acceptable by the proper officer, the said amount shall be liable to be demanded in accordance with the provisions of section 73 or section 74, as the case may be.

Therefore, there is a high chance that you may receive a FORM GST DRC-01C notice under "return compliance" tab in GSTN portal.

You can choose the option "input tax credit not availed during earlier tax period inadvertantly or due to mistake or omission" in the reply and give the details therein.

[KASTURI SETHI]

W.r.t. the views expressed by Sh.Padmantathan Kollengode Ji, it is natural that such precaution has to be taken by the querist.

[Shilpi Jain]

Has this ITC of 19784 appeared in GSTR-2B/2A? if yes, can it not be regarded as having been claimed in GSTR-3B in the month it appeared or soon after that?

[Padmanathan Kollengode]

Dear Santosh Patil sir,

you can avail ITC Till 30th nov 2023, but since you have opted for quarterly filing option you will have to change mode from quarterly to monthly, if you opt for monthly filing now protal will allow you to change mode from quaterly to monthly from 1st jan onwards. if your september returns are pending than the same can be availed till nov 23.

Thus, the ex facie view expressed is that ITC cannot be claimed in QRMP return for Q3 to be filed in Jan. Few other forums also, I had came across this view from professionals.

Only for academic discussion, I am trying to delve into the provisions in light of this view:

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 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.

41. (1) Every registered person shall, subject to such conditions and restrictions as may be prescribed, be entitled to avail the credit of eligible input tax, as self-assessed, in his return and such amount shall be credited to his electronic credit ledger.

39. (7) Every registered person who is required to furnish a return under subsection (1), other than the person referred to in the proviso thereto, or subsection (3) or sub-section (5), shall pay to the Government the tax due as per such return not later than the last date on which he is required to furnish such return:

Provided that every registered person furnishing return under the proviso to sub-section (1) shall pay to the Government, in such form and manner, and within such time, as may be prescribed,––

(a) an amount equal to the tax due taking into account inward and outward supplies of goods or services or both, input tax credit availed, tax payable and such other particulars during a month; or

(b) in lieu of the amount referred to in clause (a), an amount determined in such manner and subject to such conditions and restrictions as may be prescribed.

Rule 61(3) Every registered person required to furnish return, every quarter, under clause (ii) of sub-rule (1) shall pay the tax due under proviso to sub-section (7) of section 39, for each of the first two months of the quarter, by depositing the said amount in FORM GST PMT-06, by the twenty fifth day of the month succeeding such month:

On conjoint reading of these provision, my views is as follows:

1. Section 16(4) time limit is not linked to any return. Rather is it for self-assessment of ITC.

2. Self-assessed ITC is to be availed in Returns under section 49

3. QRMP person can choose to self-assess monthly and if they do so, they can take ITC for 2022-23 also into account for "tax due" up to Nov 30th 2023.

4. Only reporting the self assessment of Q 3 happens in Jan 2014.

This is only for academic discussion.