Goods and Services Tax – GST – By: – Bimal jain – Dated:- 22-10-2018 – Considering the first year of implementation of GST, major challenge is being faced by the Industry Inc in availing GST input tax credit ( ITC ) for the financial year 2017-18 after implementation of GST (i.e. July 2017 to March 2018) and lot of divergent views are floating with respect to the last date till which such ITC can be availed. Amongst others, most prominent apprehension is that the ITC for the period July 2017 to March 2018, can be claimed on or before due date of filing of the return in Form GSTR-3B for the month of September 2018, which is October 20, 2018. This view is engendered in the light of provisions of Section 16(4) of the CGST Act, 2017 ( the CGST Act ), which draws a time limit to avail ITC for a financial year as the earliest of due date of furnishing return under Section 39 for the month of September following the end of such financial year or furnishing of relevant annual return, whicheve
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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 . Section 39 of the CGST Act, deals with the monthly return to be filed electronically, for every calendar month or part thereof, in such form and manner as may be prescribed, of inward and outward supplies of goods or services, ITC availed, tax payable, tax paid and other prescribed particulars, on or before the 20th day of the month succeeding such calendar month or part thereof. In this regard, Rule 61(1) of the CGST Rules, 2017 ( the CGST Rules ), prescribes Form GSTR-3 as the return to be furnished under Section 39(1) of the CGST Act. Further, Rule 61(5) provides that where the time limit for furnishing of details in Form GSTR-1 under Section 37 and in FORM GSTR-2 under Section 38 has been extended and the circumstances so warrant, the Commissioner may, by notification, specify the manner and conditions subject to which the retur
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the above discussed provisions, following views are possible in the context of last date to avail ITC for the period from July 2017 to March 2018: ITC for FY 2017-18 can be availed till the date of furnishing Annual return (i.e. December 31, 2018) – Section 16(4) of the CGST Act talks about the return filed under Section 39, which is Form GSTR-3 as per Rule 61(1) of the CGST Rules. Hence, Form GSTR-3B cannot be assumed to be a substitution for Form GSTR-3. Though, Rule 61(5) as amended provides that where the time limit for furnishing details in Form GSTR-1 and Form GSTR-2 has been extended, the Commissioner may specify the manner and condition subject to which the return shall be furnished through Form GSTR-3B. Therefore, the last date for availing ITC of any invoice/debit note for a financial year 2017-18, would be the earlier of the due dates for filing the GSTR-3 for September 2018 or furnishing of Annual Return for the year 2017-18. In so far as Section 39 is concerned which refe
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er 31, 2018. Further, vide Notifications No. 45 to 47/2018 – Central Tax dated September 10, 2018, due date of GSTR-1 and GSTR-3B for taxpayers who are migrating to GST as per procedure specified in Notification No. 31/2018 – Central tax dated August 6, 2018 was extended till December 31, 2018 for the period July 2017 to November 2018. Going by the provisions of first proviso to Rule 69 of the CGST Rules, a view may be taken to state that since the time limit for furnishing Form GSTR-1 has been extended till October 31, 2018 for July 2017 to September 2018, while Form GSTR-2 remains suspended, the date of matching relating to claim of ITC shall also be extended accordingly till October 31, 2018 for all regular taxable persons and till December 31, 2018 in case of recently migrated taxpayers as per procedure specified in Notification No. 31/2018 – Central tax dated August 6, 2018. Certain Operational Issues viz-a-viz Law provisions: Credit taken in books in the month of September 2018 w
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ntinuing with the above liberal interpretation of Section 16(4) of the CGST Act, one may consciously defer to file GSTR-3B for September till October 31, 2018, but it may happen that books of the Company for FY 2017-18 is closed by 30th September, 2018 and accordingly, any such entry booked in the month of October 2018, while ITC as per GSTR-3B will be reflected in the month of September, 2018. In such cases, there will be a reconciliation issue while filing Annual Return in Form GSTR-9 and GST Audit Report in Form GSTR-9C, in addition to late fees and interest as discussed supra. Suitable clarification required from the CBIC to clear the mist: It is highly important that the Government should come out with suitable clarification on last date till when the ITC for July 2017 to March 2018 can be availed. Apart from considering the legal jigsaw of multiple provisions under the CGST Act and Rules made thereunder, due consideration is also required to the fact that multiple date extensions
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