Analysis of Amendment in Section 16(4) of CGST Act, 2017 i.e, Time Limit to Avail ITC

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Analysis of Amendment in Section 16(4) of CGST
Act, 2017 i.e, Time Limit to Avail ITC
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• Govt. vide Notification No. 18/2022-Central Tax
  dated 28.09.2022 appoints 1st October, 2022, as
  the date on which the provisions of sections 100
  of the Finance Act,2022 shall come into force. As
  per Section 100(b) of the Finance Act, 2022, in
  section 16(4) of the CGST Act, 2017, for the
  words due date of furnishing of the return u/s
  39 for the month of September, the words
  thirtieth day of November shall be substituted.
  Amended Section 16(4) of the CGST Act, 2017 A
  registered person shall not be entitled to take
  ITC in respect of any invoice or debit note for
  supply of goods or services or both after the
  30th November following the end of FY to which
  such invoice or debit note pertains or furnishing
  of the relevant annual return, whichever is
  earlier. In simple words, time limit for claiming
  ITC in respect of Invoices/Debit notes 30th
  November of next FY OR Date of filing of Annual
  return (GSTR 9), whichever is earlier. Govt. has
  extended the time limit for claiming ITC by 41
  days (i.e, from 20th October of next FY to 30th
  November of next FY) Issue ITC can be availed by
  registered person in Table 4 of GSTR-3B of a tax
  period. Question is that in which tax periods
  GSTR-3B, a registered persons can claim ITC after
  this amendment.

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• For monthly return filers For monthly return
  filers, whether it is GSTR-3B of Novembers month
  (i.e, 20th December) or GTSR-3B of Octobers
  month (i.e, 20th November). By plain reading of
  amended Section 16(4), one can conclude that for
  monthly return filers last date for availing ITC
  will be 20th November of next FY because last
  date to avail ITC is 30th November and after that
  registered person can not avail ITC. ITC can be
  availed only in Octobers month GSTR-3B i.e, 20th
  November. If this is the case then practically
  extension in the time limit for claiming ITC is
  of 31 days (i.e, from 20th October of next FY to
  20th November of next FY) and not of 41 days. One
  can also argue that for monthly return filers
  last date for availing ITC will be 20th December
  of next FY because it is not possible to avail
  ITC as on 30th November. So, registered person
  can avail ITC in GSTR-3B of Novembers month i.e,
  20th December of the next FY.Read more
  at https//taxguru.in/goods-and-service-tax/secti
  on-164-cgst-act-2017-time-limit-avail-itc.htmlCop
  yright Taxguru.in

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• My Analysis As per me, a registered person can
  avail ITC only upto 20th November of the next FY
  i.e, in Octobers month GSTR-3B. Availing ITC in
  Novembers month GSTR-3B i.e, 20th December can
  invite notices from the GST department which lead
  to litigations. A clarification is required on
  the same by the Govt. Till then its better and
  safer to avail ITC in Octobers month GSTR-3B
  only. For quarterly return filers For quarterly
  return filers, this issue is much bigger, whether
  it is GSTR-3B of September quarter (i.e,
  22nd/24th October, as the case may be) or GTSR-3B
  of December quarter (i.e, 22nd/24th January, as
  the case may be). As per amended Section 16(4),
  it is clear that for quarterly return filers last
  date for availing ITC will be same as earlier
  i.e, 22nd/24th October of next FY because last
  date to avail ITC is 30th November and after that
  registered person can not avail ITC. ITC can be
  availed only in Septembers quarter GSTR-3B i.e,
  22nd/24th October. Practically there is no
  extension in the time limit for claiming ITC for
  quarterly return filers because after September
  months quarter GSTR- 3B, GTSR-3B of December
  quarter will be filed on 22nd/24th January, which
  is far beyond 30th November, 2022.Read more
  at https//taxguru.in/goods-and-service-tax/secti
  on-164-cgst-act-2017-time-limit-avail-itc.htmlCop
  yright Taxguru.in

5

• One cannot argue that for quarterly return filers
  last date for availing ITC will be GTSR-3B of
  December quarter i.e, 22nd/24th January of next
  FY. My Analysis As per me, for quarterly return
  filers there is no change in ITC availement last
  date. A much-needed clarification is required on
  the same by the Govt. for quarterly return
  filers, otherwise there is no benefit of this
  time limit extension for them. Tags goods and
  services tax, GST, GSTR 3B, input tax
  creditRead more at https//taxguru.in/goods-and
  -service-tax/section-164-cgst-act-2017-time-limit-
  avail-itc.htmlCopyright Taxguru.in