ITC availability on tax component paid under section 73, Goods and Services Tax - GST

[Ramanathan Seshan]

Dear Experts,

I am reaching out to seek your guidance regarding the Input Tax Credit (ITC) on the tax component paid under section 73. Specifically, I would like to understand whether it is permissible to avail of ITC of the tax component when payment is made through DRC-03 or DRC-07 ? If it can be availed what is the time limit of utilizing so?

Upon perusal of Rule 36(4), I did not find any explicit restrictions concerning this matter, which raises my query further.

Regards,

S Ram

Posts / Replies

[KASTURI SETHI]

 (i) There is no time limit to utilise ITC. Restriction is  imposed on availing ITC  as  per  Section 16 (4). 

(ii) See Section 17 (5) (i) . ITC is not blocked for Section 73. It is blocked for any order passed under Section 74, 129 & 130.

[Ramanathan Seshan]

Dear Sethi-sir,

Thanks for your swift response. Does it mean that tax component of the demand raised u/s Section 73 for FY 19-20 cannot be availed for the current year owing to restriction in Sec 16(4).

In case, it can be utilized, can we avail in the next month 3B set off ?

Regards,

S Ram

[Shilpi Jain]

Tax paid u/s73 is not a blocked credit u/s 17(5).

Need further facts on your query. Are you paying this tax under RCM?

[Ramanathan Seshan]

Dear Shilpi mam,

Thanks for your swift response. 
 

The DRC-07 (Section 73) order is for the FY 20-21 which was issued in Feb 2025.

Regards,

S Ram