Availment of ITC, Goods and Services Tax - GST

[vaibhav agrawal]

Registration got cancelled on 30 September, 2021 (Effective from same date) on account of non filing of monthly returns for the FY 2020-21. The said order was passed With reference to cause notice issued on 26 March, 2018 in relation to non-filing of GST return for the FY 2017-18. Returns for the FY 2020-21 was filed on 31 March, 2022 and accordingly an appeal for revocation of cancellation of registration was filed. Registration got revoked on 23 June,2022. In this regard, Whether ITC claimed in the returns filed for the FY 2020-21 shall be available ?

Posts / Replies

[KALLESHAMURTHY MURTHY]

Dear Sir,

When the competent authority considers the revocation of cancellation of the Taxpayer’s GST registration, the Taxpayer shall be entitled to claim for availment of ITC in respect of the period from the cancellation of the registration till the registration is restored, subject to the Provisions and restrictions u/s 16 and 17. 

Sec. 30 may be referred.

Also, refer to the Judgement of the Hon’ble Rajasthan High Court in D.B. CWP No. 4236 of 2023.
 

[KASTURI SETHI]

Dear Sir,

              Still   Section 16 (4) is a bottleneck .

[KALLESHAMURTHY MURTHY]

Dear Kasturi Sethi Ji

 Sir. Definitely. Sec. 16(4) is applicable. I have combinedly referred in my answer as restrictions u/s 16 and 17. 

Thank you, Sir.

[vaibhav agrawal]

Dear Kalleshamurthy Sir and Kasturi Sir, thanks for your comment.

To summarise, ITC availed in the returns (Prior to period of cancellation) which are filed after the time period prescribed in section 16(4) and 16(6) shall not be available. 

[KASTURI SETHI]

         If it is so, you have taken ITC in the books of accounts within time limit  but on common portal it is delayed  due to late filing of GSTR 3 B return.   As per the Common Portal System, the date of  filing GSTR 3 B return is the date of availing ITC.

          However,  in my view  still  the issue is worth contesting, the books of Account being statutory records. 

             There is no other way-out except litigation.