Time Limit for Availment of ITC laying in ITC Reversal Ledger
This query is : Resolved
17 April 2025
R/sir
We have reversed ITC in 3B under table 4 b(2) the in FY 2023-24 and issued a debit note to supplier and they issued the credit note in March-2025 ( FY 2024-25) and upload the GST Portal. and balance laying in ITC Reversal Ledger till date.
Can we reclaim the ITC against ITC reversed in FY 2023-24 out of reversal ledger in 3B of March-2025
Thanks
We have reversed ITC in 3B under table 4 b(2) the in FY 2023-24 and issued a debit note to supplier and they issued the credit note in March-2025 ( FY 2024-25) and upload the GST Portal. and balance laying in ITC Reversal Ledger till date.
Can we reclaim the ITC against ITC reversed in FY 2023-24 out of reversal ledger in 3B of March-2025
Thanks
12 August 2025
Great question! Here’s the explanation regarding the time limit for availing ITC that was earlier reversed and now claimed through credit notes:
Scenario Recap:
You reversed ITC in FY 2023-24 (in GSTR-3B under Table 4B(2)) — e.g., due to debit note issued.
The supplier has now issued a credit note in March 2025 (FY 2024-25) and uploaded it on the GST portal.
The reversed ITC amount is still lying in your ITC reversal ledger.
You want to reclaim that ITC in the March 2025 return (FY 2024-25).
Relevant GST Provisions:
Time Limit to Claim ITC (Section 16(4) of CGST Act):
ITC can be claimed within the earlier of:
The due date of filing GSTR-3B for September of the following financial year, OR
The date of filing the Annual Return (GSTR-9) for that financial year.
For example, for FY 2023-24, you can claim ITC till the due date of September 2025 return or filing the Annual Return for 2023-24, whichever is earlier.
Credit Note Effect:
When a supplier issues a credit note (uploaded on GST portal), the recipient can claim ITC in the month of the credit note or later months, subject to the above time limit.
Reversal and Reclaim Ledger:
The ITC reversed earlier is kept in the reversal ledger.
When credit note is received and uploaded, you can reclaim the ITC by adjusting it in the relevant month’s GSTR-3B under the ITC claim tables (like Table 4A).
The system will adjust the balance automatically from the reversal ledger.
In your case:
Since the credit note was issued and uploaded in March 2025, and you want to claim ITC in March 2025 return,
As long as you are within the prescribed time limit (i.e., before September 2025 or filing annual return),
You can reclaim the ITC reversed in FY 2023-24 by showing it in your GSTR-3B for March 2025.
Scenario Recap:
You reversed ITC in FY 2023-24 (in GSTR-3B under Table 4B(2)) — e.g., due to debit note issued.
The supplier has now issued a credit note in March 2025 (FY 2024-25) and uploaded it on the GST portal.
The reversed ITC amount is still lying in your ITC reversal ledger.
You want to reclaim that ITC in the March 2025 return (FY 2024-25).
Relevant GST Provisions:
Time Limit to Claim ITC (Section 16(4) of CGST Act):
ITC can be claimed within the earlier of:
The due date of filing GSTR-3B for September of the following financial year, OR
The date of filing the Annual Return (GSTR-9) for that financial year.
For example, for FY 2023-24, you can claim ITC till the due date of September 2025 return or filing the Annual Return for 2023-24, whichever is earlier.
Credit Note Effect:
When a supplier issues a credit note (uploaded on GST portal), the recipient can claim ITC in the month of the credit note or later months, subject to the above time limit.
Reversal and Reclaim Ledger:
The ITC reversed earlier is kept in the reversal ledger.
When credit note is received and uploaded, you can reclaim the ITC by adjusting it in the relevant month’s GSTR-3B under the ITC claim tables (like Table 4A).
The system will adjust the balance automatically from the reversal ledger.
In your case:
Since the credit note was issued and uploaded in March 2025, and you want to claim ITC in March 2025 return,
As long as you are within the prescribed time limit (i.e., before September 2025 or filing annual return),
You can reclaim the ITC reversed in FY 2023-24 by showing it in your GSTR-3B for March 2025.
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