TMI BlogIN PUT TAX CREDIT SECTION 16(4)X X X X Extracts X X X X X X X X Extracts X X X X ..... One assessee had paid tax after claiming ITC for the month of November, 2018 in GSTR 3B and filed the same on 31.12.2018 but the person has forgotten to file GSTR 1 , which was filed later on 25.11.2019 . now the department sent a notice that: since you have filed GSTR-3B return for the month of November, 2018 on 31.12.2018 ie after the due date as mentioned above ie 20.10.2019, you are requ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ested to reverse the ITC amount. in the notice nothing mentioned about GSTR-1 . In my view since the ITC was availed with in the time hE is eligible eventhough he filed GSTR-1 belatedly on 25.11.2019 - Reply By KASTURI SETHI - The Reply = I have already studied this very issue thoroughly. The department is very very strong on merits. I am of view that in order to get relief for tax payers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an amendment in Section 16(4) of CGST Act is required. There is no other way-out - Reply By Rajagopalan Ranganathan - The Reply = Sir, The return referred to in Section 39 of CGST Act, 2017 is GSTR-3B . The due date for filing GSTR-3B for November 2018 is 20.12.2018. But you have filed the said return on 31.12.2018. Please clarify what is date of payment of tax it is 20.12.2018 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 31.12.2018. If date of payment of tax is 31.12.2018 then you have to pay interest on your tax liability. I infer from your query that you have paid the tax on 31.12.2018 without interest. Therefore the Department has asked you to reverse the ITC. However in my opinion Department cannot ask to to reverse the ITC through a letter/e-mail. they have to follow principles of natural justice and issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a show cause notice requiring you to reverse the ITC giving detailed grounds for such stand of the Department. - Reply By KASTURI SETHI - The Reply = Sh.Ranganathan Ji, Sir, I agree with you in toto. Keeping in view of the strict stand taken by the Department, interest on gross tax liability will be recovered via Section 79 (only by way of letter) and SCNs will be issued to those tax pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers whose availment of ITC is hit by Section 16(4) of CGST Act, 2017 . - Reply By Himansu Sekhar - The Reply = Before the scn an intimation calculating the amount has to be given to assessee under sec 73 and 74 - Reply By Himansu Sekhar - The Reply = Please refer rule 142(1A) - Reply By Himansu Sekhar - The Reply = Sir The question is not clear. Itc can be taken through GSTR- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3B return filed under sec. 39 . This procedure has been completed in due time. I think there is no impediment in availong the ITC. Please properly post the notice of the dept. - Reply By KASTURI SETHI - The Reply = The use of word, 'shall' in the statute indicates that input tax credit cannot be claimed beyond prescribed limit and it is mandatory. The assessing authority does not hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e power to dilute the mandatory requirement -------------- Supreme Court in the case of ALD Automobile (P) Ltd. Vs. Commercial Tax Officer reported as 2018 (364) ELT. 3 (SC) = 2018 (10) TMI 814 - SUPREME COURT . Input Tax Credit is a concession provided by the Legislature and not fundamental right of assessee. - IN PUT TAX CREDIT SECTION 16(4) - Query Started By: - RAJENDRAN K A Dated:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 22-2-2020 Goods and Services Tax - GST - Got 7 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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