[Opinion] Analysis of Amendment in Section 16(4) of the CGST Act, 2017

Prince Mittal – [2022] 143 taxmann.com 412 (Article)

Govt. vide Notification No. 18/2022 – Central Tax dated 28.09.2022 appoints 1st October, 2022, as the date on which the provisions of sections 100 of the Finance Act, 2022 shall come into force.

As per Section 100(b) of the Finance Act, 2022, in section 16(4) of the CGST Act, 2017, for the words

“due date of furnishing of the return u/s 39 for the month of September”

, the words

“thirtieth day of November”

shall be substituted.

Amended 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 30th November following the end of FY to which such invoice or debit note pertains or furnishing of the relevant annual return, whichever is earlier.

In simple words, time limit for claiming ITC in respect of Invoices/Debit notes:

30th November of next FY

OR

Date of filing of Annual return (GSTR 9)

, whichever is earlier

Govt. has extended the time limit for claiming ITC by 41 days (i.e, from 20th October of next FY to 30th November of next FY)

Issue:

ITC can be availed by registered person in Table 4 of GSTR-3B of a tax period. Question is that in which tax period’s GSTR-3B, a registered persons can claim ITC after this amendment.

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