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Unused ITC Refund at year end

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PARAMESWARA NARAYANAN

consultant

79 Points Posted on 05 March 2021

Dear Experts

Suppose a dealer having excess ITC as on 31st March after adjusting his tax liability. Whether he can claim refund of this excess ITC OR he has to carry forward this excess ITC to next FY. Please clarify.

Regards

P Narayanan

Replies (2)

Quick Summary

This discussion clarifies the treatment of excess Input Tax Credit (ITC) at the end of the financial year. For regular taxpayers, excess ITC cannot be refunded and must be carried forward to the next financial year. Only SEZ registered persons may be eligible to claim a refund under specific conditions.

Amit Potadar

Consultant

135 Points Posted on 05 March 2021

Hi Narayan,

If you are regular Tax payer you cant claim refund of Excess ITC, you have to carry forward that. If you are a SEZ registered person you can claim ITC subject to come conditions applicable.