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Bills related for March 19

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Gurumurthi Ramnathan

B.Com

51 Points Posted on 06 April 2020

the service bill received from service provider for the month of March 19. the bill was not book the bill for march19 because due to some issues. Our accounts department forget and misplaced the bill. last month when we reconciliation if ITC we came to know that the bill is not booked. can we book the bill for march 2020. and take credit ? pls advise. the credit amount nearly 1.00 lakh

Replies (6)

Quick Summary

A query was raised regarding the possibility of claiming Input Tax Credit (ITC) for a service bill from March 2019, which was unfortunately not booked at the time. According to Section 16(4) of the CGST Act, 2017, ITC must be claimed by the due date of the September return of the following year or the annual return date, whichever is earlier. Since this deadline has passed, the ITC for the March 2019 bill is considered lapsed. While the supplier could theoretically issue a credit note and a new invoice, this is unlikely to be beneficial for them as they also missed their deadline to adjust the GST amount.

CA Uma Sankar

Member

75 Points Posted on 06 April 2020

As per sec 16(4) of the CGST Act,2017, recepient cannot avail ITC after the due date of Sep month return of next year or the date of furnishing annual return which ever is earlier.

Since in your case, due date of sep 2019 return had already been over on 20.10.2019, you CANNOT avail ITC relating to a bill of FY 2018-19. (March 2019)

Gurumurthi Ramnathan

B.Com

51 Points Posted on 06 April 2020

If our service provider make the credit note and re issue the new tax invoice in current year?

CA Uma Sankar

Member

75 Points Posted on 06 April 2020

Sir,

Time limit for issuing credit note by your supplier is also their sep month return or annual return whichever is earlier.

If he issues credit note before that time period, then he can reduce this Rs.100000 GST from his next month output tax liability as you have not yet availed ITC regarding that invoice. and later on he can issue one more invoice to you in this year.

As sep month return date is over, even if he issues credit note now, he cannot adjust Rs.100000 GST to his output tax liability. So, they may not raise a credit note as it is not practically good to them.

So, that ITC amount had been LAPSED and the same will be reflected in your annual return as lapsed credit.

Shivam RC

Student

23693 Points Posted on 07 April 2020

Absolutely agree with Uma Sankar Sir's view.

As per the Provision of Section 16(4) of the CGST Act 2017, last date to claim ITC of Invoice or Debit Note is earliest of the following :

1). Due Date for filing September months Return.
OR
2). Date of filing Annual Return ( GSTR-9 ).

Since the due date for filing Return for the month of September 2019 has expired ( i.e. 20th October 2019 ), you cannot claim ITC now. It will be treated as "LAPSED ITC".