The Rajasthan Commercial Taxes Department has issued Circular No. F.17 (134) ACCT/GST/2017/547, dated August 12, 2025, directing strict verification of Input Tax Credit (ITC) claims for businesses that obtain GST registration after the prescribed 30-day period under the CGST/RGST Act, 2017.
Under Section 25 of the RGST Act, taxpayers liable for GST registration must apply within 30 days from the date they become liable. Section 18(1)(a) further specifies that ITC on pre-registration stock is allowed only if the application is made within this 30-day window. Rule 40 of the RGST Rules prescribes the manner and time limits for claiming such credit via Form GST ITC-01.
However, the department noted several instances where registration applications were filed beyond the statutory period, raising concerns over wrongful ITC claims on pre-registration stock. The Comptroller and Auditor General of India (CAG), in its 2018-19 Revenue Report, had flagged the lack of adequate checks in such cases, questioning how the authenticity of pre-registration ITC claims was being verified.
In response, the department has now directed:
- Mandatory monitoring of all new GST registrations by proper officers.
- Rejection of all ITC claims related to the period before the date of application, in cases where registration was sought after the 30-day limit.
- Strict compliance by all Additional Commissioners (Administration) to ensure the directives are uniformly enforced.
The move aims to plug potential revenue leakages and ensure that ITC benefits are extended only to businesses complying with the statutory registration timelines.
Official copy of the circular has been attached
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