Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

Input tax credit ELIGIBILITY

512 views

Save Share

Join Us Follow Us Add as Source

S.Ramakrishnan

Manager -Finance & Accounts

43 Points Posted on 21 March 2022

Dear Experts

Good evening. I need opinion on gst input tax credit.

One of our supplier has supplied some jigs and fixtures to us during the month of March 21.

But unfortunately the invoice has not been accounted and reconcilation of books and gstr2a not made.

But after one year the seller is asking payment. now we found we have not accounted and gst credit is not taken. what is the possibility of accounting the same and taking credit of that invoices. please suggest suitable option

Thanks & Regards,

S.Ramakrishan

Replies (10)

Quick Summary

This discussion addresses a query regarding claiming GST input tax credit (ITC) for jigs and fixtures supplied in March 2021, where the invoice was not accounted for and reconciliation was missed. While the general rule states ITC must be claimed by the due date of GSTR-3B for September following the financial year, and payment to the supplier must be made within 180 days to retain credit, there are potential avenues. If the invoice hasn't been booked, it can be treated as a prior period item, followed by payment to the supplier. Once payment is made, the credit can be re-availed without a strict time limit, though interest may apply if the 180-day payment window was missed. If the annual return is filed and the credit appears in GSTR-2B, it might need to be treated as an expense if not claimed as ITC.

hemant sharma

92 Points Posted on 21 March 2022

The registered person must pay to the supplier, the value of the goods and/or services along with the tax within 180 days from the date of issue of invoice. In the event of failure to do so, the corresponding credits availed by the registered person would be added to his output tax liability, with interest. Interest will be paid @ 18% p.a from the date of availing credit till the date when the amount added to the output tax liability is paid.
However, once the recipient makes the payment of value of goods and/or services along with tax, he will be entitled to avail the credit again without any time limit

Lotus Agrawal

Practice

891 Points Posted on 21 March 2022

The last date of taking ITC is the due date of GSTR-3B of September month following the FY to which the invoice relates. Hence, as the time has elapsed, you can not take ITC of the bill.

S.Ramakrishnan

Manager -Finance & Accounts

43 Points Posted on 21 March 2022

i understand. but is there any other solution to avail the input tax credit

S.Ramakrishnan

Manager -Finance & Accounts

43 Points Posted on 21 March 2022

Sir, we have not booked the invoices. Then how will we pay the same to the seller

Lotus Agrawal

Practice

891 Points Posted on 21 March 2022

I don't think there is any other way for taking the ITC. Further, you need to take the invoice in Books as a prior period item and thereafter you can make payment of the same.

Eswar Reddy S

CFO- at NHTF

15022 Points Posted on 21 March 2022

It can be availed on payment basis but if it's already appearing in 2B and annual return is already filed then you have to consider it as an expense..

Imthias ahamed Kormath

635 Points Posted on 22 March 2022

U may b contacted seller in correspodically.The payment b settled on the request of the seller and a voucher may b keep in this regard.interest b paid in the 3 b of the September month folloing the financial year.u can not take ITC from that invoice.which will b added in the gst paid as expense. and income side also

sabyasachi mukherjee

Profession

19978 Points Posted on 23 March 2022

No one has given any opinion on the accounting treatment. You cannot raise a invoice unless the same is barred by accounting accepted principles. This will be treated as prior period item.