Quick Summary
In a significant update to the Central Goods and Services Tax (CGST) Act, Section 16 has been amended with the insertion of two new sub-sections. This change aims to address input tax credit (ITC) claims for past financial years and offers relief to taxpayers whose GST registration was cancelled and
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FAQ :
CGST Section 16 has been amended with two new sub-sections to allow taxpayers to claim input tax credit (ITC) for past financial years and after the revocation of registration cancellation.
The new provisions allow ITC claims for invoices or debit notes pertaining to financial years 2017-18, 2018-19, 2019-20, and 2020-21.
These ITC claims can be made in any return filed under Section 39 up to November 30, 2021.
If a GST registration is cancelled and later reinstated, the taxpayer can claim ITC for invoices or debit notes, provided the credit wasn't restricted at the time of cancellation. This can be claimed in returns filed by November 30 of the relevant financial year or within 30 days of revocation, whichever is later.
These amendments provide relief to businesses that faced delays in filing returns due to the pandemic or operational issues, and offer clarity for claiming ITC when registration is restored.
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