Mistake in ITC on capital goods calculation

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128 Points Posted on 04 July 2021

Hi, 

I had purchases machineries in FY 19-20 and FY 20-21. 

Instead of availing full ITC amount into Electronic Cash ledger, I had taken split into 60 months and taken the amount equally in every month as I understood the concept wrongly. 

For FY 20-21 it can be corrected before Sept '22 filing and I like to Whether it is possible to correct or rectify for FY 19-20?

Regards, 

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On 04 July 2021 at 21:01 Report
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Quick Summary
A user incorrectly split their Input Tax Credit (ITC) for capital goods over 60 months instead of availing the full amount. They are seeking to rectify the calculation for FY19-20 and FY20-21. While FY20-21 corrections might be possible up to a certain point, the advice suggests that FY19-20 data is now unrectifiable due to the time limits stipulated in Section 16(4) of the GST Act.

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GST Consultant
15986 Points Posted on 04 July 2021
For 19-20 you could have taken itc upto September 2020. After that if taken you will have to reverse.
Better engage a consultant for regular advisory to avoid these types of losses in future.
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On 04 July 2021 at 21:28
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CMA
13117 Points Posted on 04 July 2021
Data related to FY19-20 cannot be corrected anymore. For FY20-21, revision can be made up to the return for Sep 2021 (not 2022)
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On 04 July 2021 at 22:20
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GST Practitioner
55067 Points Posted on 04 July 2021
No now you cannot rectify it .
The credit you have availed upto September 20 return is only available to You . As it is clearly prescribed in Section 16(4) the credit is available upto September month following the end of FY.
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On 04 July 2021 at 23:28

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