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September 30, 2022

GST  ITC for the last financial year can be claimed till 30th November know the detail provision

by CA Shivam Jaiswal in GST Circular Notification

GST  ITC for the last financial year can be claimed till 30th November know the detail provision

The new Notification 18/2022 – Central Tax dated 28th September 2022 announced by the Ministry of Finance is surely no good news. The Ministry has notified stringent input tax credit provisions and amendments which will bring into effect section 100 to 114 of the Finance Act 2022. We are required to adhere to this provision and now chose our suppliers even more wisely.  This article will help you have a better understanding of the new amendments and also help you gain a valuable piece of advice about the Do’s and Don’ts you are to follow post these amendments. These amendments shall come into force on the 1st day of October, 2022.

20th October now replaced by 30th November

Until yet, before this amendment was announced 20th October of the subsequent financial year was the last date to make amendments, issue debit or credit notes or avail ITC benefit of the transactions of the Previous financial year, but from now on the Ministry of Finance has announced extension for availment of ITC benefit of previous financial year upto 30th November. Now one more month in hand for all the reconciliations and workings for considering missed invoice or calculating of excess ITC claimed.

Insertion of new provision for ITC is going to put the purchaser at mercy of the supplier

A new Provision 16(2)(ba) has been inserted under section 100 of Finance Act 2022. This section has imposed strict restrictions on availment of Input Tax Credit. Further, it has made the purchaser vulnerable at the hands of the supplier. Going ahead default on the part of supplier, will shift the burden of liability on the recipient. The availment of Input tax credit for recipient from now on will be restricted if the supplier,

  1. Has defaulted and failed to make the GST payments
  2. If supplies in GSTR1 exceeds that of GSTR3B
  3. Excess ITC claimed in GSTR3B then that available in GSTR2B
  4. Is a newly registered tax payer
  5. Has failed to make payment of 1% output tax in cash as mentioned in accordance with Rule 86B

In reference to the above-mentioned stringent restriction, it is advice to chose your suppliers wisely specially suppliers who are GST Compliant or else there will be major consequences.

Cancellation of GST No. from Department

The GST No. may be cancelled on non-filling of GST returns within the mentioned time limit,

  1. If Monthly filers fail to furnish the GST return within 6 months
  2. Incase of quarterly filing the time line is within 2 Quarters

Other Provisions Involved

  1. On failure of payment of tax on outward supply by the supplier, the recipient is required to reverse input tax credit and can re-avail the input tax credit once payment of tax is done by the supplier.
  2. Restriction imposed on filing GSTR3b for a month without filing GSTR1 of that month
  3. Filing of GSTR1 for a month cannot be filed if GSTR1 of previous moth is not filed.

List of amendments in GST in Finance Act 2022

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