EXAMPLE-115
XYZ
Limited a manufacturer has the following detail of inputs received in the factory
on which credits were not availed earlier. This input is used for supply of goods
in September 2018.
Determine
whether the input credit available in both the following cases
|
Case |
Particular |
GST
paid (Rs) |
Date
of invoice |
Date
of Annual Return |
Date
of Sep 2018 Return |
|
(1) |
Raw
material |
10,000 |
18th
August 2017 |
28th
October 2018 |
20th
Oct, 2018 |
|
(2) |
Raw
material |
10,000 |
18th
August 2017 |
30th
August 2018 |
20th
Oct, 2018 |
.
Answer
Section 16(4)
provides the time limit for taking input tax credit. Input tax credit of any invoice or debit note for supply of goods or services
can be claimed at the earliest of the following:
(a)
Filling
of the return under section 39 for the month of September following the end of
financial year to which such invoice or such debit note pertains or
(b)
Filling
of the relevant annual return for
such financial year
Note -
This provision of time limit is only for availment of
credit and not for utilization of credit.
Case 1. In
view of above provision as date of September return is earlier than the date of annual
return i.e. 20th Oct, 2018. Thus, ITC on the invoice must be availed
on or before said date.
Hence credit
can be availed in the month of September.
Case
In view of
above provision as date of annual return is earlier than the date of September month
return i.e. 30th August 2018. Thus, ITC on the invoice must be
availed on or before said date.
Hence credit
cannot be availed in the month of
September.