The lapsed ITC can still be claimed till 31.03.2019, Gujarat High Court has accepted petition challenging provision of GST law which restrict ITC claimed upto Sept 2018 GSTR-3B.
The GST authority had issued a press release dated 18.10.2018 to point out that according to Sec.16(4) CGST Act.,2017, a registered person is not entitled to take input 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 sec 39 for the month of September following the end of the financial year to which such invoice or debit note pertains or furnishing of the relevant annual return, whichever is Earlier.
There was apprehensions on the above press release and a writ petition was filed in the Gujarat High court contesting the validity and legality of press release.
The court passed order , stating that the above press release is contrary to provisions of the Acts and rules of GST. The court accordingly directed a returnable notice to Central Govt.
We have also reviewed the relevant provisions of GST act and rules and made the following observations.
The pertinent sections for availing ITC is section 16 of the CGST Act, The conditions on the basis of ITC can be claimed are
a) Possession of Tax Invoice
b) Receipt of Goods/ Service
c) Payment of Tax
d) Furnishing of Return specified under section 39(GSTR-3) of CGST Act.
Section 39 specifies furnishing of monthly return by 20 the month succeeding such calendar month and showing details of
i) Inward and outward supplies of goods and services or both
ii) Input tax credit availed
iii) Tax payable
iv) Tax paid
v) Such other particulars as prescribed under GST rules
Rule 61(1) prescribes the format and manner of submission of monthly return. The prescribed Form is GSTR-3
Rule 61(5) states that where the time limit for furnishing of Form GSTR-1 (return of outward supplies, sec-37 of CGST) and Form GSTR-2 ( return of inward supplies, sec-38 of CGST) has been extended the return may shall be furnished in Form GSTR-3B . Thus on the basis of above provisions it can be interpreted that Form GSTR-3B is summarized and adhoc arrangement of GSTR-1 & GSTR-2.
GSTR-3B is not a substitute of monthly return, GSTR-3 as specified as under sec 39 and rule 61(5).
Where monthly return , GSTR-3 has been deferred, the last date take input credit in respect of any invoice or debit note for supply of goods or services or both of the last financial year to which such invoice or debit note can be only on the basis of last date of furnishing of annual return, GSTR-9 i.e. 31.03.2019.
The order passed by Gujarat High Court is most likely to pass order on next hearing on 09.01.2019, striking down the notifications and press release instructions on last date to avail the ITC of last financial year.