REGARDING ITC CLAIM 16(4)

431 views

Save Share

SUKHJINDER SINGH

27 Points Posted on 24 November 2023

I have filled my Gstr-3B for the month of March 2019 by Feb 2020 i.e. late by 11 months claiming ITC amount to Rs. 38662 is this ITC is wrongly claimed by me.

Replies (2)

Quick Summary

This discussion addresses the validity of an Input Tax Credit (ITC) claim made in a March 2019 GSTR-3B return, filed late in February 2020. While Section 16(4) of the CGST Act generally sets deadlines for ITC claims, recent clarifications and retrospective amendments, specifically Section 16(5), may validate such claims if filed by a certain date. The advice suggests that the ITC claimed is likely valid due to these provisions, and if a demand has been raised, rectification or appeal processes are available.

Money Money

307 Points Posted on 27 November 2023

According to the CBIC notification, the reclaimable ITC earlier reversed in Table 4 (B)2 may be subsequently claimed in Table 4 (A)5 on fulfilment of necessary conditions1. However, if you have already utilised the ITC against your output tax liability, then you may not be liable to pay interest on such undue or excess claim2. You can also reverse the ITC that is wrongly claimed in the subsequent period and no need to pay interest on merely showing the same in the return as long as such ITC is not utilised2.

However, if you have not utilised the ITC against your output tax liability, then you may have to pay interest on such undue or excess claim as per section 50 (3) of CGST Act2. The rate of interest is not exceeding twenty-four per cent., as may be notified by the Government on the recommendations of the Council2.

Aashok Kumar Sharma

Finance/Compliance Consultant

75650 Points Posted on 08 November 2026

ITC claimed in a March 2019 return filed in February 2020:
• For FY 2018-19, the Sec 16(4) deadline was the due date of the September 2019 return (20 October 2019). Claiming it in a March 2019 3B filed in February 2020 crosses that.
• Sec 16(5) (Finance Act 2024, retrospective from 1 July 2017) treats ITC for FY 2017-18 to 2020-21 as valid if claimed in any GSTR-3B filed up to 30 November 2021. Your February 2020 return qualifies. So the ITC is valid.
• If a demand was raised on this ground, apply for rectification under the special procedure (Notf 22/2024, Circular 237/31/2024), or rely on 16(5) in appeal.