If you are a GST-registered taxpayer, note that the last date to claim any pending Input Tax Credit (ITC) or amend errors/omissions for FY 2023-24 is November 30, 2024, by filing the appropriate GST forms. Missing this deadline could result in a financial loss, as unclaimed ITC cannot be used to offset your output tax liability.
How to Claim Pending ITC or Amend GST Errors for FY 2023-24
Tax experts emphasize that the GST law clearly outlines the process to claim pending ITC through GSTR-3B and amend errors in GSTR-1.
- Filing GSTR-1: Errors made in GSTR-1 can be rectified by making amendments in subsequent GSTR-1 filings.
- Filing GSTR-3B: Pending ITC can only be claimed through the GSTR-3B return.
The deadline to file GSTR-1 was November 11, 2024, and for GSTR-3B, it is November 20, 2024, without penalty. However, both returns can be submitted until November 30, 2024, subject to late fees.
Deadline for Claiming ITC: Legal Perspective
As per Section 16(4) of the CGST Act, 2017, taxpayers can claim ITC on invoices for FY 2023-24 by the earlier of the following dates:
- November 30, 2024 (for invoices related to FY 2023-24), or
- December 31, 2024 (the due date for filing the annual return for FY 2023-24).
Since ITC is claimed through GSTR-3B, the practical deadline to avail ITC without penalty is November 20, 2024. However, taxpayers can file the GSTR-3B with a late fee until November 30, 2024, to claim ITC.
Can ITC Be Claimed After November 30, 2024?
ITC cannot be claimed after November 30, 2024, as clarified by the CGST Act and subsequent press releases. Taxpayers are advised to review missed ITC and ensure it is claimed in the GSTR-3B for October 2024, filed on or before November 30, 2024.
Importance of Timely GST Return Filing
Delays in GST return filing can lead to difficulties in claiming ITC. For example:
- If a supplier fails to file returns and pay GST, the buyer cannot claim ITC, even if the supplier rectifies the issue later.
- Section 16(4) disallows ITC claims after the stipulated deadline, even if the supplier subsequently pays GST.
Amendments and Error Corrections for FY 2023-24
The deadline for correcting errors or omissions in past GST returns is also November 30, 2024.
- Amending GSTR-1: Errors can be corrected in subsequent GSTR-1 filings.
- Adjusting GSTR-3B: Errors in GSTR-3B can be manually rectified in subsequent filings.
- Annual Return: Pending corrections can be addressed in the annual return, but any additional tax liability must be paid via DRC-03 along with interest.
Recently, the government introduced GSTR-1A, allowing invoice-level details to be amended before filing GSTR-3B for the same period. This ensures that correct invoice details auto-populate in the GSTR-3B return.
Common Errors That Can Be Rectified
- Misreporting of B2B transactions as B2C (or vice versa)
- Over-reporting or under-reporting tax liabilities
- Incorrect reporting of tax under the wrong tax head
- Non-payment of Reverse Charge Mechanism (RCM) liabilities
- Incorrect or missing details for Tax Collected at Source (TCS)
- Unreported credit notes pertaining to FY 2023-24
Taxpayers should proactively review their records, file returns accurately, and utilize available features to rectify discrepancies within the stipulated timelines.