The Rajasthan Commercial Taxes Department has issued Circular No. F.17 (134) ACCT/GST/2017/547, dated August 12, 2025, directing strict verification of Input Tax Credit (ITC) claims for businesses obtaining GST registration after the prescribed 30-day period under the CGST/RGST Act, 2017.
Taxpayers u/s 25 of the RGST Act should apply within 30 days from the date they become liable. Also, section 18(1)(a) cites that the GST input tax credit (ITC) on the pre-registration stock is permitted merely when the application is made in the 30-day window. Rule 40 of the RGST Rules defines the manner and time limits to claim such credit by Form GST ITC-01.
As per the department, various instances were there in which the registration applications were submitted after the regulatory period, raising concerns for the incorrect ITC claims on the pre-registration stock. The Comptroller and Auditor General of India (CAG), in its 2018-19 Revenue Report, shows the absence of checks in these matters, asking how the genuineness of pre-registration ITC claims was being validated.
In reply, the department has now directed:
- Obligatory tracking of all new GST registrations by proper officers.
- Rejection of all ITC claims associated with the period before the date of application, in cases where registration was pursued after the 30-day limit.
- Stringent compliance by all Additional Commissioners (Administration) to ensure the directives are uniformly implemented.
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This measure is for stopping revenue leakages and ensuring that ITC benefits are extended merely for businesses in complying with the regulatory registration timelines.
Please Read the Circular
