Our Representation to Hon’ble Finance Minister and GST Council for Extension of Due Date for Claiming ITC of FY 2017-18 and 2018-19 till 30th September 2020

Ref : TC/GST/20-21/1                                                                                                               

Date : 27th June, 2020


Smt. Nirmala Sitharaman

Hon’ble Union Minister of Finance, Govt. of India &

Chairperson – GST Council

134, North Block, New Delhi – 110 001

The Office of GST Council Secretariat,

5th Floor, Tower II, Jeevan Bharat Building, Janpath Road,

Connaught Place, New Delhi – 110 001


Respected Madam/Sir,

Sub.: Extension of Due Date for Claiming ITC Under Section 16(4) of the CGST Act, 2017 till 30th September, 2020

Tax Concept is a well known platform formed for the professionals. The platform has over 500 members across India (Such as CAs, CSs, CMAs and tax practitioners).

The aim of the platform is to educate and serve professions in a better way.

Representation Started…

The GST Council has approved the Amnesty Scheme for GSTR-3B return from July, 2017 to January, 2020 vide Notification No. 52/2020 – Central Tax, Dated 24th June, 2020

For this decision, we are grateful to GST Council and Hon’ble Finance Minister.

But we want to draw your kind attention on Section 16(4) of the CGST Act, 2017 (hereafter referred to as the said act) which prescribes that :

“(4) A registered person shall not be entitled to take input tax 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 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 or furnishing of the relevant annual return, whichever is earlier.”

The said sub-section prescribes the time limit for claiming ITC for particular F.Y. i.e. For F.Y. 2017-18 the due date for claiming ITC was 23rd April, 2019 (Extended vide Removal of Difficulties Order No. 02/2018- Central Tax, Dated 31st December, 2018) and for F.Y. 2018-19 the same was 20th October, 2019.

Due to this, the claiming of ITC for F.Y. 2017-18 and F.Y. 2018-19 is not possible in the amnesty scheme launched by the GST Council.

And if any taxpayer claims the ITC for said F.Y., then there are a lot of reasons for issuance of notices to him under the provisions of the said act.

And on the other side, disallowance of ITC will have its effect on Section 50(1) of the said act too. Because without claiming ITC, the taxpayer has to pay the interest on Gross Tax Liability (commonly known as Output Tax).

This will also lead into huge burden of compliances on taxpayer and his financial position will also affect accordingly.

So, we request you to kindly extend the due date for claiming ITC under section 16(4) of the said act till 30th September, 2020, so that the taxpayers can avail their ITC in the GSTR-3B return under the Amnesty Scheme.

Thanking You.

Sincerely Yours,

Team Tax Concept

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