Section 16(4) provides the last date within which the credit for any particular FY can be claimed. Post the 53rd GST Council meeting, changes have been announced wrt the last date for claiming credit
1. Section 16 of the CGST Act is proposed to be amended to extend the due date
for claiming credits for first 4 years of implementation of GST.
2. Circular 211/2024 has been issued in the context of URD - RCM wherein the
due date is linked to the actual date of raising self invoice.
Revised time limit for availing credit has been summarized in the below slides.
Our Comments
1. Amendment in Section 16 extends the due date for claiming the credit upto FY
2020-21 to November 30, 2021 - This proposed amendment will help in
regularizing the time barred credits claimed upto the said date but will not
entitle any taxpayer to make any fresh claim of credits.
2. Any taxpayer who has already reversed the credit will not be entitled to
claim refund of the credit so reversed.
3. In case any RCM liability has been discharged (even beyond FY 20-21) where
the recipient is required to raise self invoice - Credit can be claimed even
now after raising a current dated self invoice. However, interest for delay in
payment of RCM will apply.
4. Credit under RCM - URD will include import of services and hence date of
raising self invoice will determine the time limit for claiming credit
5. Taxes paid under RCM based on SCN under Section 74 upto FY 23-24 - Credit
will be blocked based on specific provisions of Section 17(5)(i). Can be
litigated on the ground that if credit is available, it is revenue neutral and
hence Section 74 should not be invoked
No comments:
Post a Comment