ITC Claimed Notice under 16 (4)

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This query is : Resolved

PRASATH (Querist)

10 February 2020 I filed my GST Retruns on 31-12-2019 for the financial year 2017-18. I claim RS 185452/ - ITC in GST3B from July 17 to March 17 as per GST2A. I adjusted the ITC without paying taxes until March 19th. But the department gave notice yesterday how you can claim ITC. The notice is as follows ".....................As you are aware, in terms of provisions of Section 16(4) of the CGST Act, 2017 any of the registered persons filing their GSTR-3B return in respect of the last two financial years (July 2017-March 2018 and 2018-19) after 30.04.2019 and 20.10.2019 respectively, could not have availed any credit on invoices or a debit note pertaining to the relevant financial year except in respect of IGST paid on import of goods by such registered persons. Accordingly, any credit availed in violation of provisions of Section 16(4) is inadmissible. 2. Records indicate that you have filed your GSTR-3B return for the month of August & Sept. 2017, and Mar-2018 after the said due dates in which you have availed credit of Rs. 185452/- which is inadmissible under Section 16(4) of the CGST Act, 2017. 3. You are advised to deposit the amount equivalent to tax paid using such inadmissible credit through FORM DRC-03 with applicable interest. 4. In case the opportunity for voluntary compliance as suggested is not availed, appropriate action for recovery of tax paid using such inadmissible credit with interest and imposition of penalty shall be initiated as per the law............"

Regards
KRP