GST input tax credit: GST taxpayers who are yet to claim any pending input tax credit for FY 2023-24 can do so by filing the GSTR 3B form today

Attention GST taxpayers: November 30, 2024 is last day to claim pending input tax credit by filing GSTR 3B If today's date is missed in claiming the input tax credit, then he/she may lose out on the benefit of ITC to offset the GST liablity

November 30, 2024, is the last date to claim any pending input tax credit (ITC) or amend any errors or omissions in compliance with the Goods and Services Tax (GST) rules and regulations for FY 2023-24 by GST-registered taxpayers. If the taxpayer misses today’s date, he/she may lose out on claiming ITC benefit for FY 2023-24 under GST if any ITC claims are pending. It will result in a loss for the taxpayer as he/she will not be able to offset output GST liability with input tax credit.

Dinesh Jotwani, Co- Managing partner at Jotwani Associates says, "Section 16(4) of the Central Goods and Services Tax Act, 2017 reads as follows: 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. Therefore, all GST-registered taxpayers must claim any pending input tax credit (ITC) for FY 2023-24 by November 30th. This is also the deadline for filing a GST form to amend any errors or omissions. Please do so to avoid the loss of Input Tax Credit Benefits.”

Also Read: GSTN approves 5 apps for faster GST invoices verification

GST form to claim pending input tax credit for FY 2023-24
According to tax experts, there are different GST forms for claiming pending input tax credit and amending any compliance/regulatory errors or omissions under the GST regime.

GST taxpayers must use GSTR 3B form to claim any pending input tax credit. On the other hand, to amend any error or omission GSTR 1 form is to be used.

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"Any reporting error while filing GSTR 1 can be amended by the taxpayers by way of an amendment while filing GSTR 1 for subsequent tax periods. Input tax credit can only be availed in GSTR 3B return," says Smita Singh, Partner, S&A Law Offices.

The deadline to file GSTR 3B return was November 20, 2024, and the deadline for filing GSTR 1 was November 11, 2024. Both the GST returns can be filed till November 30, 2024, by paying a late fee.

GST taxpayers who are registered in Manipur have been given a relaxation. For these taxpayers, November 30, 2024, i.e., today is the last date to file GSTR 3B without any penalty and late fee.

Also Read: Know which education services are exempt from GST

November 30, 2024 is last date to claim any pending input tax credit
According to a circular issued by the Ministry of Finance (dated October 15, 2024) which quoted sub-section 4 of the CGST law: "(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.”
Singh says that as per section 16(4) of the CGST Act, 2017 the time limit to avail pending ITC on invoices pertaining to FY 2023-24 is:

30th November 2024 for invoice pertaining to FY 2023-24;
31st December 2024 i.e. date of filing annual return for FY 2023-24 whichever is earlier.

However, both these dates cannot be applicable simultaneously. According to Singh, since input tax credit can only be availed in GSTR 3B return, the time limit to avail input tax credit for invoice(s) pertaining to FY 2023-24 is the last date to file the GSTR 3B return (without any penalty) for October 2024 i.e. November 20, 2024. "The taxpayers may file GSTR 3B return after the due date till 30 November 2024 with late fees and interest for delayed payment of taxes. Therefore, input tax credit for FY 2023-24 can be availed by 30 November 2024 and not by 31 December 2024," says Singh.

Divya Bhushan, Tax partner, EY India agrees with the above analysis and says that the taxpayer is allowed to claim pending ITC, up to whichever of the following dates comes earlier: a) 30th November following the end of the financial year, or b) Due date of furnishing of annual GST return. "Accordingly, pending ITC pertaining to FY 2023-24 can only be claimed up to November 30, 2024, i.e. filing of October 2024 GSTR-3B return," she says.

Can you claim ITC credit post November 30, 2024?

Shivam Mehta, Executive Partner at Lakshmikumaran & Sridharan Attorneys, says that a doubt with respect to time limit for availment of ITC has been lingering amongst taxpayers since the time this provision has been amended.

"Considering the language of provision, a doubt persists as to whether the last date for availment of ITC can be considered as return filed for month of November 2024. However, the language is very clear that the ITC cannot be availed post 30th November 2024, as clarified by press release dated 4th October 2022. Thus, the taxpayers must evaluate the missed ITC and claim it in the GSTR-3B filed for October 2024, otherwise, they could lose out on the opportunity to avail pending ITC," he says.

This story originally appeared on: India Times - Author:Faqs of Insurances