Limitation for claiming Input Tax Credit – Sec. 16(4) of CGST Act, 2017: “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.”

Recommended Action: Claim unavailed Input Tax Credit for the period up to 31.03.2018 under GST in Returns to be filed on or before the month of September (GSTR-3B / GSTR-1)

Reconciliation: In order to reconcile the Input Tax Credit, one needs to do the following:

• Reconcile GSTR-2A (the same is now available online in Excel Format)
• Check the invoices on which ITC is claimed but is not showing in GSTR-2A. Take appropriate action.
• Claim unavailed Input Tax Credit on or before filing Returns for the month of September, 2018.
• Credit on service invoices should be checked. For eg. Invoices of Bank, telephone, Insurance, etc. (Please check whether a particular type of credit can be claimed or is restricted under GST law)
• Wherever excess credit is availed in GSTR-3B as compared to the Credit available in the books or in GSTR-2A, it has to be reversed and pay 24% interest on the same.
• Credit which was reversed due to non-payment within 180 days of date of invoice can be claimed once payment is made. The limitation period of filing Returns for September or Annual return is not applicable.

Section 43A of the CGST Act, 2017 has been inserted vide the CGST (Amendment) Act, 2018 which prescribes the procedure of claiming Input Tax Credit. On a plain reading it is clear that if the Returns have not been furnished the supplier and the recipient would be equally liable to pay the tax or the Input Tax Credit availed. The liability is joint and several. Therefore, the liability would ultimately come down on the recipient if the seller does not file the returns of outward supplies or if there is no proof of payment of Tax by the supplier. It is a draconian Section which is highly detrimental to the interest of the recipient who would be liable to take the burden for no fault of his. Even if he paid the tax on his receipt to the seller only because the supplier failed to file returns he would also be liable to reverse the Input Tax Credit availed. Both the supplier and the recipient are jointly and severally liable. It is partly done to override the Judgment of the Hon’ble Delhi Court in the case of M/s. Arise India which has also been confirmed by the Hon’ble Apex Court where it was held that Input Tax Credit cannot be denied to the purchasing dealer only because the Seller failed to pay the applicable tax collected by him from the bona fide purchasing dealer. Another reason behind inserting this provision could be to curb the menace of issuance of bogus bills. A review of such provision of law is a must as its Constitutional Validity would be in question.

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GST – CGST

 

Notification No. 39/2018-Central Tax ,dt. 04-09-2018 - Seeks to make amendments (Eighth Amendment, 2018) to the CGST Rules, 2017 Read More

 

Notification No. 40/2018-Central Tax ,dt. 04-09-2018 - Seeks to extend the time limit for making the declaration in FORM GST ITC-04 Read More

 

Notification No. 41/2018-Central Tax ,dt. 04-09-2018 - Seeks to waive the late fee paid for specified classes of taxpayers for FORM GSTR-3B, FORM GSTR-4 and FORM GSTR-6 Read More

 

Notification No. 42/2018-Central Tax ,dt. 04-09-2018Seeks to extend the time limit for making the declaration in FORM GST ITC-01 for specified classes of taxpayers Read More

 

GST- CIRCULAR

 

Circular No. 57/31/2018-GST dt. 04-09-2018 - Scope of Principal-agent relationship in the context of Schedule I of the CGST Act. Read More

 

Circular No. 58/352/2018-GST dt. 04-09-2018 - Recovery of arrears of wrongly availed CENVAT credit under the existing law and inadmissible transitional credit. Read More

 

Circular No. 59/33/2018-GST dt. 04-09-2018 - Clarification on refund related issues Read More

 

Circular No. 60/34/2018-GST dt. 04-09-2018 - Processing of refund applications filed by Canteen Stores Department (CSD). Read More

 

Circular No. 61/35/2018-GST dt. 04-09-2018 - E-way bill in case of storing of goods in godown of transporter Read More

 

GST (AMENDMENTS)

 

The Central Goods and Services Tax (Amendment) Act, 2018 dt. 30.08.2018 Read More

 

The Integrated Goods and Services Tax (Amendment) Act, 2018 dt. 30.08.2018 Read More

 

The Union Territory Goods and Services Tax (Amendment) Act, 2018 dt. 30.08.2018 Read More

 

The Goods and Services Tax (Compensation to States) Amendment Act, 2018 dt. 30.08.2018 Read More

 

CUSTOMS (NON-TARIFF)

 

Notification No. 76/2018-Cus (NT) d.t 31.08.2018 - Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Sliver Read More

 

Notification No. 16/2018-Cus (NT/CAA/DRI) d.t 29.08.2018 - Appointment of Common Adjudicating Authority by DGRI Read More

 

CUSTOMS (CIRCULAR)

 

Circular No. 28 /2018-Customs dt. 30.08.2018 - Forwarding of samples for testing to the Outside Laboratories Read More

 

Circular No. 29 /2018-Customs dt. 30.08.2018 - Pilot Implementation of Paperless processing under SWIFT-uploading of supporting documents (eSANCHI) in Exports Read More