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ITC query: Can ITC be used for Bill received in following month.

20 February 2024

Hello Members, I have one query regarding GST input.

If we could not filed previous month GST return (GSTR 3B) as some due bills were not available during the period, however bills got generated in following month with ITC.

Can we use this ITC for previous month return?

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3 Replies

RAJA P M ("Do the Right Thing...!!!") (127654 Points)
Replied 20 February 2024

No...
ITC can be available in the following month.
means ITC can be taken on when it's available in GSTR 2b return...

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Money Money (383 Points)
Replied 22 February 2024

I understand that you want to know if you can use the input tax credit (ITC) for the previous month return if you could not file the GST return (GSTR 3B) due to some missing bills.

As per the GST rules, you can claim ITC only in the month in which you receive the invoice and the goods or services. You cannot claim ITC for the previous month based on the invoices generated in the following month1. You have to file the GSTR 3B for the previous month by the due date and pay the tax liability without considering the ITC that you will receive later. You can claim the ITC for the invoices received in the following month in the GSTR 3B of that month2.

However, if you have missed filing the GSTR 3B for the previous month, you can file it with a late fee and interest. You can also adjust the ITC for the previous month in the current month’s GSTR 3B, subject to certain conditions and limitations3. You should also reconcile the ITC claimed in your GSTR 3B with your GSTR 2B and your books of accounts to avoid any mismatch or error4.

I hope this clarifies your doubt.

CA Rashmi Gandhi (Chartered Accountant) (86298 Points)
Replied 25 February 2024

My view is quite different with other two experts, if bill belongs to current month but ITC available in GSTR-2B of next month then you can claim it in current month 3B.