CLAIMING ITC FOR NIL FILING

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This discussion addresses how to claim Input Tax Credit (ITC) when your GST turnover is below 20 lakhs but you have a GST registration. It clarifies that if you're a regular dealer, you must charge GST, pay it to the treasury, and then claim ITC, even if you file nil returns. The advice given is that filing nil returns while claiming ITC and not depositing collected GST is incorrect and needs rectification to avoid legal action.

B K D

B K D (Querist)
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18 July 2022 Greetings !!

My turnover is less than 20 lakhs and have a gst registration .. how do i claim itc ??

regards

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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18 July 2022 If you are registered dealer under GST, the Rs. 20 or 40 Lakhs limit is immaterial.
If You are regular dealer (not Composite dealer), you have to charge GST, pay it to treasury, and claim ITC against it.
You also have to comply GST return filing.

B K D

B K D (Querist)
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18 July 2022 i have a consultancy company and the gst is service related .. and not a composite dealer ... my turnover is less than 20 L and basically i dont need to file gst .. but i have a gst registration as without that i was not getting an account .. i claim itc for products bought for company use ... usually i file nil filings also .. dunno if i am getting everything right ..

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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18 July 2022 File quarterly returns with data of output service details. Claiming ITC no harm, but regular return filing is mandatory.

B K D

B K D (Querist)
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19 July 2022 SINCE MY COMPANY REVENUE WAS LESS THEN RS 20 LAKHS I WAS FILING NIL .. THE GST WE USED TO CHARGE WE USED TO PROVIDE AS CASHBAK TO OUR CUSTOMERS .. ( A BIT OF MARKETING BENEFIT ) .. AND CLAIM ITC ON PRODUCTS BOUGHT FOR COMPANY USE .. HOPE THAT IS OK ??

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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19 July 2022 The process is wrong. You were charging GST from customers, which you were liable to deposit with governmental treasury. But You were filing nil return, while you were claiming ITC on your purchase. (difficult to understand how?)
You need to rectify the mistake at earliest, otherwise action will be initiated against you as per law.

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B K D

B K D (Querist)
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19 July 2022 OK .. THANKS FOR THE INFO .. WILL DOTHE NEEDFUL ASAP ..

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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19 July 2022 You are welcome..

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