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Can i avail ITC of Feb 2022 to pay Tax of Jan 2022?

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Amol Patil

33 Points Posted on 20 January 2022

I have filled GSTR 1 on 11/01/2022. My Tax is approx. 50K. My supplier has not filled his GSTR 1 so i am unable to use ITC which is around 55K. Now he is saying he will file GSTR 1 in Feb 2022.

So my question is can i use ITC of Feb 2022 to pay the Tax of Jan 2022 which is 50K? or i have to pay take Tax then only i can avail the ITC in Feb 2022?

It's urgent. Thank you in advance.

Replies (6)

Quick Summary

This discussion addresses whether Input Tax Credit (ITC) from a future period can be used to offset a past tax liability. Specifically, the user wants to know if they can use ITC available in February 2022 to pay their January 2022 tax, as their supplier delayed filing GSTR-1. The consensus suggests this is not possible due to the introduction of GSTR-2B, which links ITC availability to the supplier's filing in the relevant period. It's advised to pay the tax liability on time and claim the ITC in a subsequent return once it reflects in GSTR-2B.

Murali T

Manager Compliance

29 Points Posted on 20 January 2022

Supplier invoice belongs to Jan 22? If yes, supplier will file GSTR1 in the month of Feb 22 only.

Now you need to pay your tax liability.

Amol Patil

33 Points Posted on 20 January 2022

Supplier Invoice belongs to December 2021 and My Sales Invoice also of December 2021

Murali T

Manager Compliance

29 Points Posted on 20 January 2022

In that case you need to pay tax liability, then you can avail ITC next month once vendor filed GSTR1 on or before 10th Feb 22

Amol Patil

33 Points Posted on 20 January 2022

If i don't file 3B in Jan 2022 and i file 3B in Feb 2022 after supplier files his GSTR 1. Will that help?

I have no problem to pay Late fine of approx 1500.

vidyasagar tiwari

24 Points Posted on 20 January 2022

For the month of December 21 ,the above suggested method of delayed filing will work but for tax liability of Jan22 onwards it will may not be possible by introduction of gstr2B for availing ITC .

Pankaj Rawat

GST Practitioner

29904 Points Posted on 21 January 2022

Dear Amol
No it is not advisable.
As Form GSTR 2B has been inserted under Rule 36(4) by Notification 40/2021 CT ,e.f.1/1/2021. hence credit is available on basis of ITC reflected in your GSTR 2B .
So when you file your 3B for Dec month in Feb , the ITC for that 55k for which your supplier has not filed GSTR-1 by due date is not available in your GSTR 2B for Dec.

So my it is better to pay the tax & claim the ITC in your subsequent GSTR 3B .