QUESTION

For Section 16(4) If an assessee had failed to file GSTR 3B return from Apr-18 onwards and now he has furnished the returns in the month of Dec-19 for the period of April-2018 onwards, would ITC as available in 2A be eligible or it would lapse under provision of 16(4) for the previous financial year. as the assesse has received a notice for reversal of the same?

ANSWER

Facts of the case:GSTR-3B related to April 18 onwards were file in Dec 19, ITC available in GSTR-2A be eligible or it will lapse.

Law Applicable:
SECTION 16 OF CGST ACT
(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.

Provided that the registered person shall be entitled to take input tax credit after the due date of furnishing of the return under section 39 for the month of September, 2018 till the due date of furnishing of the return under the said section for the month of March, 2019 in respect of any invoice or invoice relating to such debit note for supply of goods or services or both made during the financial year 2017-18, the details of which have been uploaded by the supplier under sub-section (1) of section 37 till the due date for furnishing the details under sub-section (1) of said section for the month of March, 2019.

Interpretation:As per section 16(4) ITC for any FY can be availed upto due date of furnishing of the GSTR-3B for the month of September following the end of FY or furnishing of the annual return, whichever is earlier.

Extension was provided for FY 2017-18 but there is no such extension for FY 2018-19.

Conclusion:In your case the time period for availing ITC for Apr-18 to Mar 19 has already lapsed in Oct 19. Although for Apr 19 onwards ITC can be availed upto due date of Sep 2020 GSTR 3B. Therefore you are required to reverse the ITC claimed for Apr-18 to Mar 19.(Reply dt. 29-01-2020)