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Claim ITC of 2019-20 in 2020-21

Saurabh Dubey (Accountant) (68 Points)

08 August 2020

Dear All,

Trust you are doing well and keeping safe.

I just want to know that can we take ITC of 2019-20 in 2020-21 & Did Govt issued any notification about it

Please help me out 🙏

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5 Replies

raj (Finance Manager) (22 Points)
Replied 08 August 2020

Dear,
Yes, You can take itc of 2019-20 upto the due date of gstr 3b for September 2020. It is as per section 16(4) of the cgst act,2017.

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Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 09 August 2020

As per the provision u/s 16(4) of CGST Act, 2017, a taxpayer can take input tax credit in respect of any invoice or debit note for supply of goods or services or both before the due date of furnishing of the return (GSTR 3B) for the month of September following the end of financial year or up to the filing of annual return of that year, whichever is earlier.

So, in yout case as per above provision, you can take ITC of 2019-20 in 2020-21 up to the due date of filing return of September 2020 (i.e 20th October, 2020) and annual return for F.Y 2019-20 whichever is earlier.

CA. Heet Shah (Tax Consultant & Practitioner) (6174 Points)
Replied 09 August 2020

Originally posted by : Saurabh Dubey
	Dear All,Trust you are doing well and keeping safe.I just want to know that can we take ITC of 2019-20 in 2020-21 & Did Govt issued any notification about itPlease help me out 🙏

The Act itself provides an clarity that the ITC can be claimed until last date of filing of GSTR3B for the month of sep or annual return for the F.Y 19-20.

However credit needs to be claimed within 1year from the date of Invoice.

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 09 August 2020

@ Mr. Heet Shah ji

Criterion of "Credit needs to be claimed within 1 year from the date of Invoice." is applicable for claiming ITC on opening stock at time of New registration or conversation from composition to regular scheme. It's not applicable in normal course for ITC.

So, in this case "to be claimed until last date of filing of GSTR3B for the month of September, 20 or annual return for the F.Y 19-20, whichever is earlier is only applicable."