GST ITC REGARDING

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This query is : Resolved

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A business filed their March 2019 GSTR-3B late on 26/11/2019, claiming ₹54,000 in Input Tax Credit (ITC) which was reflected in GSTR-2A. They have now received a GST DRC-01A notice demanding payment of this ITC with interest, citing Section 16(4) of the CGST Act. The query seeks advice on how to contest this, arguing that since late fees and interest were already paid for the delayed filing, the ITC should not be reversed. The response suggests that eligibility for ITC may depend on a logical interpretation of the law rather than a specific section, and advises preparing a detailed reply to the officer.

pradip jain

pradip jain (Querist)
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10 February 2021 I HAVE FILED GSTR3B OF MARCH 2019 ON 26/11/2019 WITH LATE FEE. IN THIS RETURN WE CLAIMED ITC OF RS. 54000/- (CGST 27000+ SGST 27000). IN GSTR 2A ALL ITC REFLECTED. BUT TODAY (10/02/2021) NOTICE IN FORM GST DRC - 01A RECEIVED. IN THIS NOTICE OFFICER SAYS TO PAY RS. 54000/- WITH INTEREST. WHAT CAN WE DO? IF WE NOT FILED RETURN OF 2018-19 BEFORE 20/10/2019 WE CANNOT TAKE ITC? PLS REPLY URGENT BASIS. PLS HELP US.

CA Shivam Arora

CA Shivam Arora (Expert)
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10 February 2021 As per my view you are eligible for such ITC. You can convince the officer by giving suitable reply in Part B of Form GST DRC-01A.

pradip jain

pradip jain (Querist)
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10 February 2021 IN NOTICE OFFICER SAYS THAT AS PER SECTION 16(4) OF CGST/MGST ACT 2017 I HAVE NOT ELIGIBLE FOR ABOVE ITC. SIR, I HAVE FILED RETURN ON 26/11/2019 (AFTER 20/10/2019). IN WHICH SECTION I HAVE ELIGIBLE FOR ITC? PLS INFORM DETAILED.

CA Shivam Arora

CA Shivam Arora (Expert)
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10 February 2021 The answer does not lie in any section but in the logical interpretation of law. Since you are already being penalised in terms of late fee and interest for late filing of Mar 2019 return so you cannot be asked to further reverse the credit and pay interest. It requires very detailed elaboration backed by case laws and/or your own logical interpretation. Such detailing is not possible to share in this forum.

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