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ITC claim benefits in Annual Return

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Akmal Jameel

35 Points Posted on 24 February 2023

If ITC not claim in GSTR-3B but declare in GST Annual return.
Same as Tax on outward liability not paid in GSTR-3B but show in GST Annual return.
Can we declare that the tax on outward liability may be adjust by ITC which was not claim in GSTR-3B but claim in Annual return.

Replies (7)

Quick Summary

This discussion clarifies that Input Tax Credit (ITC) cannot be directly claimed in the GST Annual Return. While you can't claim it retrospectively in the annual filing, it may be possible to adjust unclaimed ITC against unpaid outward liability. This is considered a revenue-neutral situation for the government, though it might be subject to litigation. A Supreme Court judgment from a previous tax regime is referenced as a favourable precedent.

CA Altamush Zafar

GST Consultant

15986 Points Posted on 24 February 2023

ITC cannot be claimed in Annual Return.

Only possible through GSTR-3B

CA Mayank A Jain

Chartered Accountant in Practice

1260 Points Posted on 27 February 2023

Though you can not claim ITC in annual return. You can set off the unclaimed ITC with unpaid liability as it is a revenue neutral situation for the government. However, this is subject to litigation. There are favorable judgements of Supreme Court in the erstwhile regime.