CBIC extends the due date for availment of ITC for a F.Y. to 30 November of subsequent F.Y.
The CBIC vide Notification No. 18/2022 - Central Tax dated 28 September 2022 has notified various provisions of the Finance Act 2022 to be effective from 01 October 2022. However, none of the provisions bear more importance than Section 16 of the CGST Act, which provides for the time-limit for availment of ITC for a particular F.Y. As per Section 16(4) of the CGST Act, as it stands today, the last date to avail ITC for a F.Y. is the due date of Form GSTR-3B for the month of September of the subsequent F.Y. With effect from 01 October 2022, the due date will be extended to 30th Day of November of the subsequent F.Y. The key amendments to come into effect from 01 October 2022 have been tabulated hereunder:
|
Sr. No. |
Provision under the CGST Act |
Amendment |
|
1 |
Section 16 [Eligibility and conditions for taking input tax credit] |
A new clause (ba) has been inserted in sub-section (2) restricting ITC to the extent it is available in as per GSTR-2B; and Time limit for availing ITC in respect of invoices or debit note for a F.Y. is extended up to 30th November of following financial year |
|
2 |
Section 29 [Cancellation or suspension of registrations] |
The Proper Officers may cancel the registration of composition dealers who have not furnished their return in a F.Y. beyond three months from the due date; |
|
3 |
Section 34 [Credit and Debit Notes] |
Any registered person who issues a credit note in relation to a supply of goods or services or both shall declare the details of such credit note in their return for the month before 30th November of the subsequent F.Y. |
|
4 |
Section 37 [Furnishing details of outward supplies] |
Last date for rectification or error in respect of outward supplies can be made till 30th day of November following the end of the FY to which such invoice pertains |
|
5 |
Section 38 [Furnishing details of inward supplies] |
Only the eligible ITC which is available in Form GSTR-2B can be availed by the recipient |
|
6 |
Section 39 [Furnishing of returns] |
The non-resident taxable person should furnish the return for a month by 13th day of the following month; Time limit for rectification of errors in the return has been extended upto 30th November of the following F.Y. |
|
7 |
Section 42, 43,43A [Provisions relating to matching and reclaiming ITC ] |
Provisions relating to provisional claim of ITC have been omitted, as GSTR-2B is the principal document, basis which credit is to be claimed |
|
8 |
Section 47 [Levy of Latee Fees] |
Late fees prescribed for delayed filing of TCS Return in Form GSTR-8 |
|
9 |
Section 49 [Payment of tax, interest, penalty and other amounts] |
Taxpayers can transfer of any amount of tax, interest, penalty, fee etc. available in electronic cash ledger to a distinct person registered under same PAN |
|
10 |
Section 52 [Collection of tax at source] |
Time limit for rectification of errors in return furnished in form GSTR-8 (TCS Returns) has been extented upto to 30th November of following F.Y. |
|
11 |
Section 54 [Refund of Tax] |
The time limit for claiming tax refund by the by specialized agency of UNO that has been paid on inward supplies, is extended from 6 months to 2 years from the last day of the quarter in which the said supply was received |
GLS Comments:
The above-mentioned amendments had been recommended in the Finance Bill in February 2022. However, the same are being notified after a period of 6 months. Nonethless, as they say... better late than never. These amendments are welcome by the Trade and Industry. Especially the amendment to Section 16(4) of the CGST Act. Further, in lines with the said amendment, various due dates such as the last day for issuane of credit notes and reporting in GSTR-1, rectifications in GSTR-1, GSTR-3B, etc.
It would further be pertinent to note that generally the Financial Statements of any Company are closed in the month of September. Thus, any missed-out credit, transactions, credit notes, etc. which are identified during the finalizing and closing of the Financials Statements in the month of September, can now be availed by virtue of the amendment in Section 16(4) of the CGST Act.
It shall also be borne in mind that the due date for availing credit u/s. 16(4) has been extended till 30th November of the following F.Y. and not the due date of filing the return for the month of November. Thus, effectively the credit for a particular F.Y. can be availed in GSTR-3B for the month of October of the following F.Y., provided that the same is filed on or before 30th November.
Disclaimer:
The information provided in this update is intended for informational purposes only and does not constitute legal opinion or advice. Readers are requested to seek formal legal advice prior to acting upon any of the information provided herein. This update is not intended to address the circumstances of any particular individual or corporate body. There can be no assurance that the judicial/ quasi judicial authorities may not take a position contrary to the views mentioned hereinrra quis.
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