Party has unpaid GST liabilty (after considering available ITC) for January 2021 due to financial problem. And for February there is balance ITC available. Query is, can the party set off January liability against available ITC in February and pay the balance GST liability?
Of course it do s not. But can the party claim to have forgotten reporting if few sales bills of January and consider thise bills in February there by utilising all available credit and paying balance amount which works out to be 50% less than that if January. Many tax payers are facing financial issues and also their working capital gets affected due to heavy liability in one month but excess credit in subsequent month.
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