ITC temporary reversal and reclaim

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This query is : Resolved

Quick Summary

You can delay claiming your Input Tax Credit (ITC) in GST as long as you do so before the deadline. This deadline is the earlier of the September following the financial year of the invoice or the date of filing your annual return. While you can hold off on claiming, you must ensure it's reclaimed within these statutory time limits.

Avinash Jeevan Dsouza

Avinash Jeevan Dsouza (Querist)

20 November 2024 Hello,
I have an ITC, which I don't want to claim now, I may have to claim after 1 month or 6 months or after a year. How do I do it in GST?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

20 November 2024 Under Section 16(4) of the CGST Act, you can claim Input Tax Credit (ITC) only within the due date for filing the GST return for the month of September following the end of the financial year in which the invoice was issued, or the date of filing the relevant annual return, whichever is earlier.
You can hold off on claiming this credit in your GST returns (GSTR-3B or GSTR-9) and claim it in a later period as long as it’s within the time limits.

Avinash Jeevan Dsouza

Avinash Jeevan Dsouza (Querist)

20 November 2024 Oct-24 ITC I can hold till Sep-25?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

20 November 2024 Yes...

Avinash Jeevan Dsouza

Avinash Jeevan Dsouza (Querist)

20 November 2024 What is the maximum time available to claim?

Also how do I temporarily reverse and reclaim (detailed steps)

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

20 November 2024 Refer: https://taxguru.in/goods-and-service-tax/guide-electronic-credit-reversal-re-claimed-statement-ecrrs.html
OR https://www.caclubindia.com/articles/reversal-of-itc-under-gst-47515.asp
OR https://cleartax.in/s/matching-reversal-reclaim-of-itc

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