Impact of Clause "aa" of Section 16 of GST

This query is : Resolved

Rakesh Sharma (Querist)
Follow

27 December 2021 Respected Experts,

Some confusion to take ITC on below conditions :-
1) Custom duty included IGST will be paid on 30-12-2021 and goods will come on 1st or 2nd Jan.
So in which month we have to take ITC. I think it will be Jan as we will receive goods in Jan.

2) Party issued Tax Invoice on 31-12-2021 and material will be recd. on 1st or 2nd Jan.
Since ITC will be reflected in 2B for the m/o Dec-21. But we have to take ITC in Jan

Can department send notice in above situations as we will take excess ITC w.r.t. 2B in both the months. Should we prepare reco. for the above cases.

Kindly advise,

Rakesh Sharma

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

28 December 2021 ITC can be taken on both the cases in December GSTR 3b, as goods received before the filing date and 2B credit appear in both the cases in December.
No notice will be received as credit appear in 2B.

Rakesh Sharma

Rakesh Sharma (Querist)
Follow

28 December 2021 Thanks for your prompt reply Sir. But Sir, ITC condition of Section 16 says that Material & Invoices should be received. Sir, if we take above ITC in Dec, but enter Invoice in Jan. Can department raise any question on ITC.

Please advise Sir.

Upgrade to CAclubindia Pro. Subscribe Now!

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

29 December 2021 No notice in case 2B matched with ITC claim.