Date Extended to claim ITC (Input Tax Credit) Under GST for FY 2017-18, 2018-19, 2019-20, 2020-21 | New Section 16(5) and 16(6) Notified

Notification No. 17/2024 of Central Tax issued to notify the changes as per Finance Act (No.2) 2024 through which new changes are notified one of them is Date extension to claim ITC or FY 2017-18, 2018-19, 2019-20, 2020-21, w.e.f 1 November 2024

Read All Changes which are Notified

Below is Notification

Understand the Change:

Amendments to Section 16 of the CGST Act to Insert Sub Section (5) and (6):

Applicable from 1 November 2024

1. Insertion of Sub-section (5):
   • Exception for Financial Years 2017-18 to 2020-21:
     • A new sub-section (5) is being introduced in Section 16 to provide an exception to the existing time limits for availing Input Tax Credit (ITC) under sub-section (4) of the CGST Act.
     • For invoices or debit notes related to Financial Years 2017-18, 2018-19, 2019-20, and 2020-21, registered taxpayers will be allowed to claim ITC in any return filed under Section 39 up to November 30, 2021.
     • This extends the period for claiming ITC for these specific financial years beyond the regular time limits, offering relief to taxpayers who might have missed claiming it within the standard timeframe.
2. Insertion of Sub-section (6):
   • ITC on Revocation of Registration Cancellation:
     • A new sub-section (6) allows a registered person to avail ITC on invoices or debit notes for the period between the date of cancellation of their GST registration and the date of the revocation order.
     • The taxpayer can claim this ITC in the return filed within 30 days of the revocation order, provided the time limit for claiming credit under sub-section (4) had not already expired at the time of registration cancellation.
     • This ensures that businesses whose registrations were canceled can still claim ITC for that period if their registrations are reinstated.
3. Effective from July 1, 2017:
   • These amendments are retrospectively applicable from July 1, 2017, which is the date of the implementation of GST in India.
4. No Refund for Reversed ITC or Paid Tax:
   • If ITC has already been reversed or if the tax has been paid, no refund will be granted for the same under this amendment. This clause ensures that businesses cannot reclaim amounts that have already been settled or reversed.

These changes offer flexibility for taxpayers, especially those who missed deadlines for claiming ITC or had their registrations canceled. However, they also limit any retrospective claims for refunds on taxes already paid or ITC already reversed.

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