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What to Do for Claiming GST ITC & Reversal for FY 22-23

Deadlines for Claiming GST ITC and Reversal for FY 22-23

Input Tax Credit (ITC) serves as a taxation mechanism, allowing businesses to offset taxes paid on inputs against the taxes due on their output. Essentially, it permits businesses to claim a credit for taxes paid on purchases, thereby reducing their overall tax burden.

The limitations on Input Tax Credit (ITC) are detailed in GSTR-2B, Section 38. The revised timeline for claiming ITC on GST invoices or debit notes within a financial year is the earlier of two dates: November 30 of the subsequent year or the date of filing annual returns.

This implies that a taxpayer cannot claim ITC for invoices or debit notes relating to goods or services after November 30 following the financial year’s end or the filing of the pertinent annual return, whichever comes first.

With the approaching deadline of November 30, 2023, for the 2022-23 financial year, taxpayers must ensure adherence to GST regulations concerning Input Tax Credit (ITC). It’s pivotal to review and claim eligible ITC on invoices or debit notes before the specified deadline to comply with regulations and optimize tax advantages.

Needful Things to Do for ITC and Reversal Tax Credit

To align with the financial year 2022-23 deadline and uphold adherence to GST regulations regarding Input Tax Credit (ITC), taxpayers should promptly undertake the following actions:

Properly View GST Invoices and All Debit Notes

Examine and validate all invoices and debit notes related to goods or services
Determine eligible Input Tax Credit (ITC) by confirming that the invoices satisfy the requisite GST criteria

Accurate Reconciliation Between GST Returns and Books

Proper Record Keeping

On-Time GST Return Filing

Quickly Resolve Any Problem

Connect with Suppliers

Examine GSTR-2B Data

Ineligible Items for Input Tax Credit Claims Under GST

Input Tax Credit (ITC) is not permitted on:

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