XYZ is registered with GST on 29.06.2018. However, he started charging GST in the invoices from October’18. During the period July, August and September’18, he issued invoices but without charging GST. This fact he has noticed now. Now in todays date if he pays GST with interest and issues Debit Note / supplementary invoice to the client, can the client claim ITC against it?
In light of the prevailing Section 16(4) of the CGST Act, 2017 as the invoice towards which the debit note has been raised is connected to FY 2018-19 , the ITC on such debit note also becomes time barred on 20th October,2019 (while filing Sept, 19 GSTR-3B). However the Sec 16(4) has been amended by FA, 2020 to remove above hardship by not linking credit of debit note to the original invoice, however same is still not notified.
In our view the matter is debatable and if high stake is involved , ITC may be availed. Though same would be litigative.
Team Clearmytax.in