Have you not availed any ITC of F.Y. 2017-18?Intention of the government to permit availing of ITC pertaining to July 2017 to March 2018 uptofiling of Return for the month of Sept 2018 is very clear from the following actions of the CBIC : 1. The Annual Return Form GSTR 9 in clause 8C requires ITC on inward supplies (other than imports and inward supplies liable to reverse charge but includes services received from SEZs) received during 2017- 18 but availed during April to September, 2018. This may be interpreted by the department that ITC pertaining to 17-18 has to be availed till Sept 2018, else it will lapse. Necessary clarification / amendment in Clause 8C of Annual Return to be brought in. 2. CBIC issued the circular no. 72/2018 Central Tax dtd. 26.10.2018 wherein it has been clearly mentioned that If the time limit specified in sub-section (2) of section 34 of the CGST Act has lapsed, a credit note may still be issued by the supplier for such return of goods but the tax liability cannot be adjusted by him in his hands. It may further be noted that in case time expired goods are returned beyond the time period specified in the sub-section (2) of section 34 of the CGST Act and a credit note is issued consequently, there is no requirement to declare such credit note on the common portal by the supplier (i.e. by the person who has issued the credit note) as tax liability cannot be adjusted in this case. However, it is important to examine the provisions of Section 16 (4) of CGST Act 2017.
Quote:(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 invoice relating to such debit note pertains or furnishing of the relevant annual return, whichever is earlier.
Un-quoteLet us understand the returns which is required to be furnished under Section 39, which is for furnishing the returns :
|39 (1)||(1) Every registered person, other than an Input Service Distributor or anon-resident taxable person or a person paying tax under the provisions of section 10 orsection 51 or section 52 shall, for every calendar month or part thereof, furnish, in such formand manner as may be prescribed, a return, electronically, of inward and outward supplies ofgoods or services or both, input tax credit availed, tax payable, tax paid and such otherparticulars as may be prescribed, on or before the twentieth day of the month succeedingsuch calendar month or part thereof.||It was expected earlier that GSTR-1 for outward supply will be filed on 10th of subsequent month and GSTR-2A will be auto generated which needs to be confirmed / modified / rejected. Thereafter there will be auto-population GSTR-2 and allowed additional entries to be made for which supplier might have not filed GSTR-1 Thereafter, GSTR-1A will be generated and mismatch to be removed. Thereafter GSTR-3 will be auto populated and to be confirmed and payment of taxes to be made through electronic credit ledger / electronic cash ledger. In other words, Section 39 provided the return in the form GSTR-3 but there was a breakdown in the system and taxpayers were suffering and therefore simplified GSTR-3B return was notified under Rule 61(5)&(6) which was inserted vide notification 17/2017 - CT dt 27.07.2017 5) Where the time limit for furnishing of details in FORM GSTR-1 under section 37 and in FORM GSTR-2 under section 38 has been extended and the circumstances so warrant, the Commissioner may, by notification, [specify the manner and conditions subject to which the]41 return shall be furnished in FORM GSTR-3B electronically through the common portal, either directly or through a Facilitation Centre notified by the Commissioner (6) Where a return in FORM GSTR-3B has been furnished, after the due date for furnishing of details in FORM GSTR-2- (a) Part A of the return in FORM GSTR-3 shall be electronically generated on the basis of information furnished through FORM GSTR-1, FORM GSTR-2 and based on other liabilities of preceding tax periods and PART B of the said return shall be electronically generated on the basis of the return in FORM GSTR-3B furnished in respect of the tax period; (b) the registered person shall modify Part B of the return in FORM GSTR-3 based on the discrepancies, if any, between the return in FORM GSTR-3B and the return in FORM GSTR-3 and discharge his tax and other liabilities, if any; (c) where the amount of input tax credit in FORM GSTR-3 exceeds the amount of input tax credit in terms of FORM GSTR-3B, the additional amount shall be credited to the electronic credit ledger of the registered person.|
- 1) Whether ITC can be availed when supplier have not filed / uploaded GSTR-1 and such transactions do not reflect in GSTR-2A?
- 2) Whether ITC can be availed when supplier has uploaded GSTR-1 and transaction is reflected in GSTR2A but corresponding credit is not availed / reflected in GSTR-3B of the tax payer or ITC receivable in the books of accounts?
- 3) Whether ITC can be availed when mismatches in quantity and /or value do not match with GSTR-1 uploaded by Supplier and reflected in GSTR-2A?
- 4) Whether ITC can be availed when supplier has not filed GSTR-3B?
- 5) Whether ITC not availed against the receipts of supply and goods & services supplied on or before 31st March 2018 can be taken even before filing annual return?
- a. he is in possession of a tax invoice or debit note issued by a supplier registeredunder this Act, or such other tax paying documents as may be prescribed;
- b. he has received the goods or services or both. Explanation: For the purposes of this clause, it shall be deemed that theregistered person has received the goods where the goods are delivered by the supplierto a recipient or any other person on the direction of such registered person whetheracting as an agent or otherwise, before or during movement of goods, either by way oftransfer of documents of title to goods or otherwise;
- c. subject to the provisions of section 41, the tax charged in respect of suchsupply has been actually paid to the Government, either in cash or through utilization of input tax credit admissible in respect of the said supply; and
- d. he has furnished the return under section 39: