GST ITC DISALLOWED

Section 16(4) of the Central Goods and Services Tax (CGST) Act, 2017, states that a registered person can avail ITC only if the details of the invoices are furnished by the supplier in the GST returns. If the supplier has not filed the GST-1 within the stipulated time, the ITC may be disallowed.

To my knowledge, upto Financial year 2018-2019, we can claim ITC if we have purchase bills. Generally, Your ITC contains

1. ITC which was claimed and reflected in GSTR 2A

2. ITC which was claimed by you but not reflected in GSTR 2A

For the first case you can just give a month wise summary.

For the second case you can attach the purchase bills on which you have claimed ITC but not reflected in GSTR 2A.

If the aforesaid rule of claiming ITC Without reflecting those in GSTR 2A is not applicable, then you should make payment of the amount of ITC which was disallowed and claim it from the parties which it was disallowed.

Sec 16(5) may rescue FY 2018-19:

• For FY 2017-18 to 2020-21, Sec 16(5) (Finance Act 2024, retrospective from 1 July 2017) allows ITC claimed in any GSTR-3B filed up to 30 November 2021 to be valid, even if beyond the original Sec 16(4) time limit.

• If your FY 2018-19 ITC was claimed in 3B by 30 November 2021, the 16(4) disallowance is no longer valid. Cite 16(5), and Notf 22/2024 / Circular 237/31/2024 for rectification of orders already passed (apply within 6 months of the notification, by about 7 April 2025).

• If claimed after 30 November 2021, 16(5) doesn't help, and the disallowance stands (unless other arguments apply).

• Sec 16(6) covers registrations cancelled and revoked.