Input credit

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Querist : Anonymous

Querist : Anonymous (Querist)

31 May 2013 If we forget to take input credit in previous month can we take in this month.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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31 May 2013 In return show payment in cash and also show input credit taken. You CENVAT Credit balance will increase and the same can be adjusted later.

Querist : Anonymous

Querist : Anonymous (Querist)

31 May 2013 my qyery is at the time of service tax payment i made the service tax payment before 8 days in the month of april n we get the bill of april for payment can i adjust that amount while paying this time service tax

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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01 August 2024 Yes, you can generally adjust or claim input credit in the month in which the bill was received or in subsequent months, as long as it aligns with the applicable rules for service tax or GST. Here’s how it works in both contexts:

### **Under the Service Tax Regime**

1. **CENVAT Credit Timing:**
- Under the Service Tax regime, you are allowed to claim CENVAT credit on input services in the month in which the service is received and the invoice is received.
- If you have missed claiming credit in the previous month, you can claim it in the current month as long as it is done within the time limit prescribed by the rules.

2. **Adjustment of Payment:**
- The payment of service tax does not directly impact the claim of CENVAT credit. You can claim credit on the invoice for the service received irrespective of when you made the payment.

3. **Procedure:**
- Ensure that the invoice you received is in compliance with the rules and that you have properly recorded it in your books.
- Claim the credit in the current month's CENVAT credit register and adjust your service tax payment accordingly.

### **Under the GST Regime**

1. **Input Tax Credit (ITC) Timing:**
- Under GST, ITC can be claimed in the month in which the invoice is received or in any subsequent month within the financial year. However, it should be claimed before the due date of filing the annual return for that financial year.
- The time limit for claiming ITC is generally up to the due date of filing the return for September of the following year or the actual date of filing the annual return, whichever is earlier.

2. **Adjustment of Payment:**
- Similar to the service tax regime, the timing of your GST payment does not affect your ability to claim ITC. You can claim ITC for invoices received in the current or previous months as per the GST rules.

3. **Procedure:**
- Make sure you include the invoice details in your GST returns. If you missed claiming ITC in a previous month, you can include it in the current month's GST return.
- Ensure proper documentation and that the credit is claimed within the allowed period.

### **In Summary**

- **For Service Tax:** You can adjust the credit in the month the bill is received or any subsequent month within the prescribed time limit.
- **For GST:** You can claim ITC for invoices received within the financial year and before the due date of filing the annual return.

Always refer to the latest updates and specific rules applicable to your situation for accurate compliance.

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