The time limit for availing of input tax credit (ITC) as mandated under Section 16(4) of the CGST Act, 2017 was extended by Section 100 of the Finance Act, 2022. Further vide Notification No. 18/2022- Central Tax dated 28-09-2022 inter alia the provisions of said Section 100 were made effective w.e.f. 01-10-2022. For understanding the change the earlier Section 16(4) and the amended Section is given as under:
Earlier Provision:
(4) A registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after the due date of furnishing of the return under section 39 for the month of September following the end of financial year to which such invoice or debit note pertains or furnishing of the relevant annual return, whichever is earlier.
Amended Provision (effective from 01-10-2022)
(4) A registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after the thirtieth day of November following the end of financial year to which such invoice or debit note pertains or furnishing of the relevant annual return, whichever is earlier.
With above amendment the time limit of availing of ITC has been increased from 20th / 22nd / 24th October (due date of GSTR-3B of September) to 30th November of next financial year to which the invoice or debit note, of which ITC is being availed, pertains to.
Whether the above extension applicable for invoices / debit notes of FY 2021-22
We may note that the amended provision is applicable from 01-10-2022 and as the time limit for availing of ITC of invoices / debit notes for FY 2021-22 has not yet expired , it can be presumed that the extended time limit viz upto 30th November, 2022 will be applicable to such invoices / debit notes also.
Further the helpdesk has clarified today that benefit of an extended time limit to avail Input Tax Credit till 30th November 2022 is applicable for the Financial Year 2021-2022 as well. The clarification given by help desk is reproduced for ready reference of our readers:
Dear Sir/Mam,
Thank you for contacting CBIC Mitra Helpdesk.
We have received your support request and we understand that you want to know due date to avail ITC of FY 21-22.
This is to inform you that, as per notification 18/2022 on the 28th of September 2022, the notification mentions that the 1st of October 2022 shall be the date from when Sections 100 to 114 shall be implemented, except Sections 110(c) and 111 of the Finance Act 2022. The major update that industry and tax professionals were waiting for falls under Sections 100, 102, and 103. These amend Sections 16(4), 34 and 37 of the Central Goods and Services Tax (CGST) Act.
Earlier, the taxpayers could reconcile and make amendments to sales invoices and Credit/Debit Notes (CDN) or claim any previously missed Input Tax Credit (ITC) belonging to FY 2021-22 earlier of two dates. Firstly, the due date of filing GSTR-1/3B of September 2022 and, secondly, the date of filing Form GSTR-9. Hence, the window was the GSTR-1/3B for monthly filers and the Invoice Furnishing Facility (IFF)/GSTR-1/GSTR3B for quarterly filers.
With this notification that applies after the 1st of October 2022, the due date stands revised from
FY 2021-22 onwards for disclosing such yearly amendments or previously missed reporting to
earlier of the 30th of November 2022 or the date of filing Form GSTR-9.
If you require any further information, please call us on our toll-free number 1800-1200-232, and we would be glad to assist you.
Thanks and Regards,
*****
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Frah Saeed is a law graduate specializing in the core field of indirect taxes and is the Co-founder of taxwallah.com. She has authored many publications on GST and is into full-time consultancy on GST to big corporates. She as a part of taxwallah.com heads a team comprising of Chartered Accountants and Advocates and plays a key role in our mission to disseminate GST knowledge to all.
