Reg ITC availment for invoices of FY21-22

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This query is : Resolved

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To claim Input Tax Credit (ITC) for invoices from FY21-22, businesses must pay suppliers within 180 days of the invoice date. Failure to do so means the availed ITC will be added back to your output tax liability. However, you can reclaim the ITC once the payment is made, even if it's after the 180-day period or the September 30th deadline.

Ajay Goswami

Ajay Goswami (Querist)
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02 July 2022 To claim ITC, the buyer should pay the supplier for the supplies received (inclusive of tax) within 180 days from the date of issuing the invoice. If the buyer fails to do so, the amount of credit they would have availed, will be added to their output tax liability.

pl clarify above with example

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 July 2022 The amount of credit availed has to be reversed in GSTR 3b. So that amount will be added to output tax liability.

Ajay Goswami

Ajay Goswami (Querist)
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02 July 2022 Suppose GST invoice is of date 5.5.2021 and today we received the invoice we have passed the bill and make the payment before 30.09.2022, in that case ITC would be available.

Then the "invoice date" written in this statement will not affect it ""To claim ITC, the buyer should pay the supplier for the supplies received (inclusive of tax) within 180 days from the date of issuing the invoice. If the buyer fails to do so, the amount of credit they would have availed, will be added to their output tax liability.""

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 July 2022 Yes, it will be added to output tax liability but ITC can be claimed again when the bill is paid later.

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