Denial of ITC

A supplier filed their GSTR 3B returns for February and March 2020 late, on November 2nd and 14th, 2020, respectively. The department denied their Input Tax Credit (ITC) claim, stating that the deadline of 30th September had passed. The response confirms this is correct as the last date to claim ITC for a financial year is typically the September GSTR 3B of the following year. Once this date lapses, the ITC becomes ineligible. Options include treating the paid tax as an expense or issuing a debit note.