"Input Tax Credit Complete Guide - Time Limit to Claim (GST for CA Exams)"#gst #itcrules #taxation

Summary

The transcript explains the deadlines for claiming Input Tax Credit (ITC) under GST. It highlights two key dates: 30th November of the next financial year or the date of filing GST returns, whichever is earlier. For example, if goods are purchased in January 2025, the ITC can be claimed until 30th November 2025, or earlier if GST returns are filed by then. It also stresses that once the deadlines pass, ITC cannot be claimed, no matter the circumstances. The section is important for business owners and CA students, reminding them to keep track of their ITC claims to avoid missing out.

Takeaways

• 😀 The deadline for availing Input Tax Credit (ITC) is either 30th November of the next financial year or the date when the annual GST return (GSTR) is filed, whichever is earlier.
• 😀 If goods were purchased in January 2025, the ITC on those purchases can be availed until 30th November 2025.
• 😀 If the GST return (GSTR-1) is filed earlier, say on 15th December, the deadline for availing ITC would be that date (15th December), whichever comes earlier between 30th November and the filing date.
• 😀 In case the GST return is filed on 15th August, then the ITC deadline will be 15th August itself.
• 😀 After the deadline, no ITC can be claimed, even if appeals or other actions are taken.
• 😀 It is crucial to track and ensure that ITC has been availed on time for your business.
• 😀 Always verify your ITC eligibility with your Chartered Accountant (CA) to avoid missing the deadline.
• 😀 The script emphasizes the importance of remembering the ITC deadline to avoid losing out on tax credits.
• 😀 The script provides an example with different dates (November, December, and August) to explain how ITC deadlines work based on the GST return filing date.
• 😀 Students preparing for CA exams should be particularly attentive to these ITC deadlines, as it is an important point in their syllabus.
• 😀 The next section of the script introduces the concept of 'Block ITC', which will be discussed in Section 175.

Q & A

What are the two dates provided for claiming ITC (Input Tax Credit)?

The two dates provided for claiming ITC are either 30th November of the next financial year or the date when you file your annual return (GSTR-9), whichever is earlier.

If a business purchases goods in January 2025, until when can they claim ITC?

If goods are purchased in January 2025, the ITC can be claimed until 30th November 2025, as per the deadline of the next financial year.

How does the date of GSTR-9 filing impact the ITC claim period?

The ITC claim period is impacted by the date you file GSTR-9. For example, if you file it on 15th December 2025, the earlier of 30th November or 15th December will be the cutoff date for claiming ITC.

What happens if the GSTR-9 is filed in August 2025? How does it affect the ITC claim?

If GSTR-9 is filed in August 2025, the cutoff date for claiming ITC will be 15th August 2025, and you can claim ITC only until that date.

What happens if the ITC claim is not made within the specified dates?

If the ITC claim is not made within the specified dates, no ITC will be available. You cannot claim it even if you file an appeal or take other actions.

Is there any flexibility in the ITC claim date for businesses?

No, there is no flexibility in the ITC claim date. The business must adhere to the earlier of the two dates – either 30th November of the next financial year or the date of filing GSTR-9.

Can a business consult a CA (Chartered Accountant) regarding ITC claims?

Yes, businesses can consult a CA for advice regarding ITC claims to ensure they are claiming it correctly and within the deadlines.

Why is the 30th November deadline important for businesses?

The 30th November deadline is important because it represents the last date for claiming ITC for goods purchased in a given financial year, based on the GST law.

What is the significance of the 'block ITC' section mentioned at the end of the transcript?

The 'block ITC' section, mentioned as Section 175, is a reference to certain goods and services for which ITC cannot be claimed. This section will be covered in more detail in the next segment.

Who should remember the ITC claim deadlines mentioned in the transcript?

Both business owners and CA exam students should remember these ITC claim deadlines, as they are crucial for maintaining compliance with GST regulations.