CBIC Clarification on ICAI request to extend Deadline upto 31 Dec. 2018 for availing ITC (FY 2017-18)
CBIC clarifies that deadline for availing the ITC for FY 2017-18 will continue to be 20 Oct. 2018 (i.e. due date for filing GSTR-3B of Sept. 2018) except in the case of Taxpayers under Migration who can file GSTR-3B for Sept. 2018 by 31 Dec. 2018. This clarification follows the ICAI request/ representation letter to extend the deadline to avail ITC upto 31 Dec. 2018.
1. There appears to be misgiving about the last date for taking input tax credit (ITC) in relation to invoices or debit notes relating to such invoices pertaining to period from July, 2017 to March, 2018. Such uncertainty seems to stem from the Government’s decision to extend the last date for furnishing of details of outward supplies in FORM GSTR-1 from time to time.
2. According to section 16(4) of the CGST Act, 2017, a registered person shall not be entitled to take ITC 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 (hereinafter referred to as “the said invoices”) or furnishing of the relevant annual return, whichever is earlier.
3. With taxpayers self-assessing and availing ITC through return in FORM GSTR-3B, the last date for availing ITC in relation to the said invoices issued by the corresponding supplier(s) during the period from July, 2017 to March, 2018 is the last date for the filing of such return for the month of September, 2018 i.e. 20th October, 2018.
4. It is clarified that the furnishing of outward details in FORM GSTR-1 by the corresponding supplier(s) and the facility to view the same in FORM GSTR-2A by the recipient is in the nature of taxpayer facilitation and does not impact the ability of the taxpayer to avail ITC on self-assessment basis in consonance with the provisions of section 16 of the Act. The apprehension that ITC can be availed only on the basis of reconciliation between FORM GSTR-2A and FORM GSTR-3B conducted before the due date for filing of return in FORM GSTR-3B for the month of September, 2018 is unfounded as the same exercise can be done thereafter also.
5. It may, however, be noted that the Government has extended the last date for furnishing of return in FORM GSTR-3B for the month of September, 2018 for certain taxpayers who have been recently migrated from erstwhile tax regime to GST regime vide notification No. 47/2018- Central Tax dated 10th September, 2018. For such taxpayers, the extended date i.e. 31st December, 2018 or the date of filing of annual return whichever is earlier will be the last date for availing ITC in relation to the said invoices issued by the corresponding suppliers during the period from July, 2017 to March, 2018.
6. All the taxpayers are encouraged to take note of the legal requirements and be compliance savvy.
Extend Deadline for availing ITC for FY 2017-18 upto 31 Dec. 2018: ICAI requests Govt.
ICAI has submitted a request/ representation letter to FinMin/ Govt. to permit/ extend deadline for availment of input tax credit (ITC) by Taxpayers under GST from 20 Oct. 2018 to 31 Dec. 2018 in respect of Financial Year (FY) 2017-18, in view of practical difficulties being faced by the Trade & Industry in availing ITC.
ICAI has submitted 12 reasons for extension of the aforesaid deadline in the representation letter. ICAI has stated that the rationale of providing a cut-off date of 20 Oct. 2018 for availing iTC of invoices pertaining to FY 2017-18 is more related with the return filing system originally introduced (i.e. Form GSTR 1, 2 & 3) wherein a functionality of bi-lateral flow of ITC was built in and hence the flow of credit was restricted. However, now since the entire return filing system is based on monthly summary return in Form GSTR 3B and Annual Return in Form GSTR 9 along with reconciliation statement in Form GSTR 9C, there is a need to reconsider the due date for availment of input tax credit (ITC) and to extend the same upto 31 Dec. 2018 considering various practical difficulties being faced by the Trade and Industry.
CBIC clarifies that deadline for availing the ITC for FY 2017-18 will continue to be 20 Oct. 2018 (i.e. due date for filing GSTR-3B of Sept. 2018) except in the case of Taxpayers under Migration who can file GSTR-3B for Sept. 2018 by 31 Dec. 2018. This clarification follows the ICAI request/ representation letter to extend the deadline to avail ITC upto 31 Dec. 2018, as above.