Right from introduction of GST Law, Claiming of Input Tax Credit (ITC) has been daunting task for the Taxpayers. There are many conditions attached to it for paving the path for smooth ITC claim.
Since filing GSTR-3B of September 2021 has passed, many continue to question what happens if the ITC of FY 2020-21 is not claimed yet. Anyone who is not aware, GSTR-3B of September 2021 is of special relevance for annual return GST compliance.
The due dates of GSTR-3B for Sept-2021, is 20th, 22nd or 24th of Oct 2021, and the last date to claim ITC pertaining to the FY 2020-2021. As per Section 16(4) of the CGST Act, 2017 – ITC claims of a financial year cannot be availed in the GSTR-3B of September of the following year.
Recently in Oct-2021, GST Network clarified on the following points related to claiming of ITC-
- Suppose a supplier reports any invoices or debit notes of FY 2020-21 in GSTR-1 after the due date GSTR-3B of September 2021.
- Such ITC will not appear ‘ITC Available’ section of GSTR-2B.
- These records will appear in ‘ITC Not Available’ section of GSTR-2B and will not auto-populate in GSTR-3B.
- This will also get updated in ‘ITC as per GSTR-2A’ section of Table-8A of the GSTR-9 for the recipients.
While claiming ITC, taxpayers must make sure if conditions in the GST Act are satisfied.
- He should have the invoice,
- Receive the goods or services,
- Payment made within the given time limit and,
- Supplier has filed his return and paid taxes.
The time limit for ITC claims is mentioned in the CGST Act, and even as explained above. It acts as another primary condition that cannot be ignored. Time limit to claim ITC of FY 2020-21 is over as per the law.
There can be many such cases of unclaimed ITC by the due date either due to the supplier’s delay or fault. Any wrong ITC credit claim after the due date is also against the law and can invite action by the GST authorities.
While the authorities have requested the taxpayers to act on the above pointers, few days before filing GSTR-3B of Sept-2021.
Many taxpayers faced issues of multiple follow-ups with their suppliers for invoice reporting. Despite this, many suppliers continue not to comply with the reporting of the invoices or delayed the reporting. This invoices of previous year which causes inconvenience to the recipient taxpayer.
Many taxpayers either on social media or through representations by tax practitioners asking for an extension till 31st Dec 2021 for claiming ITC of FY 2020-21. This is also the due date to file GSTR-9 and GSTR-9C for FY 2020-21 to which the government is yet to take a call for allowing any such extension.
LogiTax ensures that such situations do not come to September every year. LogiTax not only provides the intelligent information of claiming missed credit previous months. It also tracks unreconciled unclaimed invoices.