GST accumulated credit FY 2019-20

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This discussion clarifies the treatment of accumulated GST Input Tax Credit (ITC) for traders who had no sales from April to September 2020. Experts confirm that ITC available as of 30th September 2020, even if not utilised in the previous financial year, can be adjusted against future sales liabilities from October 2020 onwards. The consensus is that Section 16(4) of the GST Act pertains to the time limit for availing ITC, not its utilisation, and accumulated ITC already claimed in GSTR-3B does not lapse.

R.KANDASUBRAMANIAN

R.KANDASUBRAMANIAN (Querist)
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10 November 2020 Experts
we have accumulated input pertaining to FY 2019-20 as on 30th Sep 2020
we are the traders and due to no sales from April 2020 to Sept 2020, ITC remains available
whether this ITC to be adjusted for October 2020 sales liability
or THIS ITC is lapsed
Experts please give your opinion

Lekhraj sood

Lekhraj sood (Expert)
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10 November 2020 You can very much utilise it for October and future months.ITC will not elapse in this manner.

R.KANDASUBRAMANIAN

R.KANDASUBRAMANIAN (Querist)
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11 November 2020 Respected Mr.Lekhraj sood, well and thanks for your reply .But pleased to refer section 16(4) of GST which states time limit for availing Input credit which has been reflected in credit ledger. Whether section 16(2) override section 16(4)
Experts kindly clarify this issue . Section 16(4) time limit only for the claim of input or its usage

Lekhraj sood

Lekhraj sood (Expert)
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11 November 2020 Section 16(4) is time limit is only for taking ITC and not for the utilisation of accumulated ITC which is already claimed in GSTR3B.

R.KANDASUBRAMANIAN

R.KANDASUBRAMANIAN (Querist)
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11 November 2020 Respected Sir well and thanks for your reply , thanks again

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