REGARDING LAPSED ITC

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D.Srinivasulu

B.SC

202 Points Joined May 2014

Hai gd mng to caclubindia team,

I am D. Srinivasulu, cleartax customer. Actually my client got problem, working as contractor, his liability in in 08/2018 is around 592000/-after set off itc 235000/-we cannot filed Gstr 3B 08/2018 due some problems. That's why all gstr 3b returns pending from 08/2018 to till date. But Gstr 1 filed up to I think 03/2020.the officer issued notice to pay liability for 08/2018.here the officer said that you have to pay tax without adjust itc I. E. 235000/- because this is lapsed due not filing gstr 3b returns more than 2 years I. E. From 08/2018 to till date. So total liablity is 592000+235000=827000+plus penalty of 827000/-first of all lapsed itc 235000/- correct or not. Next levie penalty . Please suggest

Replies (6)

Navin Agarwal

354 Points Joined June 2017

ITC lapse is correct in accordance with section 16(4) which stipulates the time limit which was 20th October 2019 in your case.
In case of penalty in relation with self assessed tax, section 73 gets attracted and it enumerates the penalty of 10 percent of amount of self assessed tax or 10000 whichever is higher needs to be paid.