GSTN Clarifies Timeline for Claiming ITC for FY 2020-21

Section 16(4) of CGST Act, 2017 states that taxpayers shall not take Input Tax Credit (ITC) related to the Financial Year (FY) 2020-21 after the due date of furnishing the return for September 2021. It is to be noted that the due date for the GSTR-3B for September 2021 is 20th October 2021 for monthly return filers. However, the due dates would be 22nd October 2021 or 24th October 2021 based on the state/UT the taxpayer was registered to. 

In this regard, the Goods and Services Tax (GST) authorities clarified the following points:

  1. The invoice or debit notes related to FY 2020-21 reported in GSTR-1 after the September 2021 GSTR-3B due date will not reflect in the ‘ITC Available’ section of GSTR-2B. However, such records will reflect in the ‘ITC Not Available’ section of GSTR-2B, and also those details shall not be auto-populated in GSTR-3B.
  2. Invoice or debit notes related to FY 2020-21 reported in GSTR-1 after the September 2021 GSTR-3B due date will not be reflected in the ‘ITC as per GSTR-2A’ column of Table-8A GSTR-9 of the recipients.

Hence, the authorities requested taxpayers to keep the above points in mind and to report invoices or debit notes relating to FY 2020-21 on or before September 2021 GSTR-3B due date or July-September 2021 GSTR-3B due date in case of quarterly GSTR-3B filters. Also, any wrong ITC claims shall constitute non-abidance of GST law and may lead to action by the authorities as per the law.

Join our Telegram channel to keep getting updates on all things finance.

For any clarifications/feedback on the topic, please contact the writer at dvsr.anjaneyulu@cleartax.in

You May Also Like

Taxation of dividend income received on or after 1 April 2020 (FY 2020-21)

You may receive a dividend from your equity or mutual fund investments.…
GSTR-9

CBIC has notified an extension of two months to various GST compliance

The government of India has notified yet another extension for the completion…
Gold Jewellery

24K Gold Rate in India for November 2019: Week 4

The fourth week began with the gold rate in India holding at…

Due date to file annual GSTR-4 for FY 2019-20 gets further extended

The government has further pushed the deadline to file the brand new…