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TMI BlogUtilisation of ITC availedX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Experts Please give clarity on below mentioned query: Can we utilize ITC for payment of GST liability of FY 2017-18 in the month of November 2018 if balance in credit ledger which was availed in FY 2017-18 has already been exhausted and the balance in credit ledger in current month is related to current financial year. In other words period wise matching of ITC availed and utilised is nece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssary or not? Please revert. - Reply By KASTURI SETHI - The Reply = There is no problem or such restriction. Restriction of one year or before filing return for September was for availment and not for utilisation. Basic criteria of utilising ITC in the course of business or furtherance of business is fulfilled in the situation explained by you. One to one correlation is not required. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITC is your cheque and you can use it in the course of business or furtherance of business. - Reply By Archna Gupta - The Reply = Please give the reference of section because in GST Act it is not mentioned anywhere about the utilisation of ITC which was not in existence at the time of supply of goods or services. - Reply By KASTURI SETHI - The Reply = I have no such clear cut authority o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the issue. My reply is based on the notion that duty paid through Cenvat Account is equal to payment of duty in cash. There is a judgement of CESTAT but pertaining to pre-GST era. - Reply By DR.MARIAPPAN GOVINDARAJAN - The Reply = Section 16(4) of CGST Act provides that a registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Therefore the provision is applicable to taking of input tax credit and not for utilization. But the R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue may take different view. - Reply By KASTURI SETHI - The Reply = Nicely explained by Dr.Govindarajan Sir. I would like to add that there is no revenue loss to Govt. in this situation. - Reply By Archna Gupta - The Reply = Thanks Dr. Govindarajan ji. I was also thinking the same that there will always be a fear that department can raise demand and deny the benefit of ITC utilised on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ground that it was not available at the time of supply. If I am wrong please correct me. - Reply By KASTURI SETHI - The Reply = It is not fear but phobia. - Reply By Pavan Mahulkar - The Reply = Please go through section 49 (4) The amount available in the electronic credit ledger may be used for making any payment towards output tax under this Act or under the Integrated Goods and Servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces Tax Act in such manner and subject to such conditions and within such time as may be prescribed. But As per your scenario your liability is for the FY 17_18 you are paying it in 18-19, Hence you have to pay interest on delayed payment and this payment of interest can't be paid through utilising the ITC credit You have to pay the interest by crediting the cash ledger as per sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 49(3) of CGST Act - Reply By KASTURI SETHI - The Reply = There is no dispute about payment of interest through Electronic Cash Ledger. I agree with Sh.Pavan Ji. - Utilisation of ITC availed - Query Started By: - Archna Gupta Dated:- 29-11-2018 Goods and Services Tax - GST - Got 9 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Manag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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