ITC Not Claimed in GSTR3B But Claimed in GSTR9—Allowabiilty of—CA. Satyadev Purohit

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The Tax Publishers GST--Input Tax Credit ITC Not Claimed in GSTR-3B But Claimed in GSTR-9--Allowabiilty of CA. Satyadev Purohit The learned author seeks to examine an issue as to whether ITC not claimed in GSTR-3B (though reflected in GSTR-2B) but claimed in GSTR-9, is valid under the GST law. The related issue is being discussed in the light of relevant statutory provisions and a recent Madras High Court decision in the case of Sri Shanmuga Hardwares Electrical v. The State Tax Officer 2024 TaxPub(GST) 492 (Mad-HC). 1. Eligibility and conditions for taking input tax credit Section 16 of the Central Goods and Services Tax Act, 2017 (in short "the CGST Act") deals with eligibility and conditions for taking input tax credit. As per sub-section (1) of section 16, every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person. The conditions for claiming input tax credit are specified under sub-section (2) of section 16 of the CGST Act, which the during the relevant period read under: "(2) Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless, -- (a) he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed; (b) he has received the goods or services or both. Explanation.--For the purposes of this clause, it shall be deemed that the registered person has received the goods or, as the case may be, services-- SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

GST--Input Tax Credit

ITC Not Claimed in GSTR-3B But Claimed in GSTR-9--Allowabiilty of

CA. Satyadev Purohit

The learned author seeks to examine an issue as to whether ITC not claimed in GSTR-3B (though reflected in GSTR-2B) but claimed in GSTR-9, is valid under the GST law. The related issue is being discussed in the light of relevant statutory provisions and a recent Madras High Court decision in the case of Sri Shanmuga Hardwares Electrical v. The State Tax Officer 2024 TaxPub(GST) 492 (Mad-HC).

1. Eligibility and conditions for taking input tax credit

Section 16 of the Central Goods and Services Tax Act, 2017 (in short "the CGST Act") deals with eligibility and conditions for taking input tax credit.

As per sub-section (1) of section 16, every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person.

The conditions for claiming input tax credit are specified under sub-section (2) of section 16 of the CGST Act, which the during the relevant period read under:

"(2) Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless, --

(a) he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed;

(b) he has received the goods or services or both.

Explanation.--For the purposes of this clause, it shall be deemed that the registered person has received the goods or, as the case may be, services--