Demand for reversal of ITC claimed for Input of January 2020 but Return filed on 29th December 2020.

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A user received a demand notice (DRC-07) for Input Tax Credit (ITC) claimed on inputs purchased in January 2020, despite the corresponding GSTR-3B being filed on 29th December 2020. The concern is that the claim was made after September 2020. Advice suggests waiting for official notifications regarding Section 16(5) and the recommended insertion of Section 148 for rectifying such demands, as the 54th Council meeting has made recommendations for both.

Sudipta Das

Sudipta Das (Querist)
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07 September 2024 I have received a Demand in DRC 07 for ITC claimed for Inputs purchased on January 2020. But the GSTR 3B for the month of January 2020 was filed on December 2020. Since it was claimed after September 2020. Can I claim relief Under Section 16 Subsection (5) now or will I have to wait for the notification for the same to be released.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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10 September 2024 In 54th Council meeting held on 09.09.2024, it has recommended to insert section 148 for rectification of orders where demand has been created on this issue. also section 16(5) is recommended to be notified at the earliest. So wait till the notification. you can file rectification within 3 months.

Sudipta Das

Sudipta Das (Querist)
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10 September 2024 Thankx for your reply.

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