GST ITC big update - Claim your Old ITC | File Application to claim Old Input Tax Credit under GST

Summary

This video explains the recent changes in GST Input Tax Credit (ITC) claims following the 54th GST Council Meeting. It outlines the new process for rectifying ITC claims from past financial years (2017-2021) and provides step-by-step instructions on how to use the new GST portal form for submitting corrections. Taxpayers can now rectify denied claims and update their records for ITC, even if they missed the original deadline. The video also offers guidance on how to fill the rectification form and explains important details, ensuring taxpayers can take advantage of these updates to claim their ITC rights.

Takeaways

• 😀 Input Tax Credit (ITC) can be claimed until November 30th of the following financial year.
• 😀 If you missed claiming ITC due to exceeding the Section 164 time limit, you can now claim it with new provisions.
• 😀 The 54th GST Council Meeting announced relief for taxpayers who missed claiming ITC due to expired time limits.
• 😀 A new form on the GST portal is now available for those who wish to rectify past ITC claims with outstanding demand orders.
• 😀 Taxpayers who filed returns for earlier periods (FY 2017-2021) after the November 2021 deadline can now take action to claim ITC.
• 😀 If there were demand orders from the department against your ITC, you now have the option to file a rectification request through a new form.
• 😀 Affected taxpayers can submit the rectification application directly on the GST portal under 'Services' -> 'User Services' -> 'My Applications'.
• 😀 When filing the rectification form, select the 'Application for Rectification of Order' option and include details like order number, period, and reason for rectification.
• 😀 For each year with a separate order, taxpayers must file individual applications for each period, ensuring all details are entered correctly.
• 😀 If you’ve already paid the ITC dues for past demand orders, unfortunately, no relief or refund will be granted under these new provisions.

Q & A

What is the deadline for claiming Input Tax Credit (ITC) under GST?

The deadline for claiming Input Tax Credit (ITC) is November 30th of the following financial year after the relevant financial year closes. For example, for FY 2017-18, the deadline was November 30, 2018.

What happens if a taxpayer misses the original deadline to claim ITC?

If a taxpayer misses the original deadline, they can still claim their ITC if the claim is eligible for relief under new provisions. The 54th GST Council Meeting allowed for claims from past periods to be filed, provided they meet certain conditions.

How can a taxpayer claim ITC for previous years if they missed the original deadline?

Taxpayers can claim ITC for previous years by filing a rectification form through the GST portal. This process allows them to correct any missed claims and resolve outstanding demand orders.

What is the new form introduced by the GST portal for claiming ITC after the deadline?

The GST portal introduced a new form under the option 'Application for Rectification of Order' to help taxpayers claim ITC for past years after the original deadline has passed.

What are the steps involved in filing a rectification application for ITC on the GST portal?

To file a rectification application, taxpayers need to log into their GST account, navigate to 'Services' > 'User Services' > 'My Application', select 'Application for Rectification of Order', fill out the form with relevant details such as order number, tax period, and reason for rectification, and then submit the form.

Is it necessary to file separate applications for different financial years and demand orders?

Yes, separate applications need to be filed for each financial year and corresponding demand order. The form must be filled according to the specific order number and tax period.

What happens if a taxpayer has already paid the demand against their ITC?

If a taxpayer has already paid the demand against their ITC claim, no refund will be provided under the new provisions. The rectification process only applies to claims that were previously rejected but are now eligible for credit.

What should a taxpayer do if they receive a demand order for an old ITC claim?

If a taxpayer receives a demand order for an old ITC claim, they should file the rectification form on the GST portal to resolve the issue and potentially claim the ITC that was initially rejected.

Can a taxpayer claim ITC for the periods 2017-18, 2018-19, 2019-20, and 2020-21 under the new provisions?

Yes, taxpayers can claim ITC for the periods 2017-18, 2018-19, 2019-20, and 2020-21 if they filed their returns by November 30, 2021, and their ITC claims were previously denied. The new provisions allow them to file for rectification.

Where can a taxpayer find more information or courses on GST and related topics?

Taxpayers can visit 'CAGuruji.com' for detailed courses and free resources on GST, Income Tax, Accounting, and other related topics. The platform offers lifetime access to several courses, including popular ones like the Automation of Balance Sheets course.