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Mistake in ITC on capital goods calculation

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Ramachandran R

129 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,

Replies (3)

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.

CA Altamush Zafar

GST Consultant

10402 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.

CMA Poornima Madhava

CMA

9106 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)

Pankaj Rawat

GST Practitioner

29904 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.