The Central Board of Indirect Taxes and Customs (CBIC) has extended the due date for claiming Input Tax Credit (ITC) to November 30th, 2022, from the earlier deadline of October 20th, 2022. The notification also extends the deadline for issuing credit notes and declaring GST returns for Financial Year 2022, to November 30th.
On what grounds can your ITC claims be denied?
Input Tax Credit claims under the current GST regime can be canceled due to a
- Mismatch between details of the returns filed in forms GSTR-1, containing the monthly Statement of Outward Supplies and Form GSTR 3B, containing the summary of monthly GST liabilities of the GST Dealer,
- OR
- A mismatch between auto drafted ITC statements by the suppliers in forms GSTR-2B and GSTR 3B
Recent changes in GST rules
According to a recent amendment to the GST rules over the grounds for canceling GST registrations of dealers, a government notification specified that,
- if a GST dealer, required to file his returns monthly, fails to do so, for a continuous period of 6 months,
- OR
- If a GST dealer, required to file his returns quarterly, fails to do so for two consecutive tax terms
then , the GST registrations of such dealers can be canceled by the GST Department immediately.
Secondly, the buyer, from now on, cannot claim input tax credit for the goods and services purchased, if a corresponding statement of Input Tax Credit containing the details of the purchase, has not been filed by the supplier.