There are only three weeks for the businesses to have one last chance to avail of the Input tax credit (ITC) and to settle the errors and omissions under the Goods and Services Tax (GST) mechanism. Experts warn that certain new changes introduced this fiscal year will affect their claims.
CGST Law 2017 cites “A registered person shall not be entitled to take the input tax credit in respect of any invoice or debit note for the supply of goods or services or both after the November 30 following the end of the financial year to which such invoice or debit note pertains or furnishing of the relevant annual return, whichever is earlier.” This can be done either through filing GSTR 1/GSTR 3B for October or annual returns through GSTR 9 pr GSTR 9 C.
Taxpayers submit GSTR 1 to outline their outward supplies for the month and disclose their tax liabilities. Meanwhile, Form GSTR-3B serves as a simplified summary return, allowing taxpayers to report their overall GST liabilities for a specific tax period and fulfil these obligations.
For every tax period a normal assessee is needed to file Form GSTR-3B returns. The deadline for monthly filers to file Form GSTR-3B is the 20th day of the month following the month (tax period) for which the return is been related. Monday is the last date for filing monthly returns in GSTR 1 and it is November 20 for GSTR 3B.
Both can be filed by November 30 but there will be a late fee. Meanwhile, the annual return for FY24 can be submitted till December 31, but as per the provision of law which cited the earliest date among all the three, therefore November 30 is technically the last date for correction in GST complaints.
A tax expert with Co-Chair of – Co-Chairman of the Indirect Tax Committee lists four corrections and amendments for the FY24 through filing GST returns of October.
These comprise the claim of ITC of invoices, issuance of credit notes for adjustment in output tax liability, revision of GSTR-1 for correction and amendment of any error or omission, and revision. “These actions can be taken through GSTR1/GSTR3B of October 2024 on or before November 30, 2024,” he added.
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In another way these measures can be performed with the annual return filing, tax experts cited that the annual return filing furnishes the last chance to correct all the errors and omissions in the monthly returns particularly the ITC omissions of the earlier fiscal year.
As GSTN has introduced certain amendments in its portal the assessees are required to take care of the omissions that could get rectified and those which are beyond redemptions. On October 15 a circular was issued for the amendment made in the identical fiscal pertinent with the due GST ITC claim and the revision in the GST complaints.
For instance, it cited that for the matter where any investigation/proceedings concerning the incorrect claim of the ITC alleging the breach of the GST law has been started but no demand i notice/statement has been issued, ITC can be claimed on the grounds of the order furnished via the proper officer.
If demand notices have been issued then the adjudicating authority shall pass the order carrying the amendment made in law. In the matter of appeal, the same will take place.
