Section 16(4) of CGST Act & Rejection of ITC

This query is : Resolved

Suraj (Querist)
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09 January 2024 Dear Sir,

Please guide us on the rejection of the ITC claimed in GSTR 3B filed beyond the prescribed limits mentioned u/s 16(4) of CGST Act. The interest & late filing fees were paid along with Form GSTR 3B. A notice is received from the dept rejecting the ITC claimed and the payment of this ITC.

Can an assessee challenge this further? or he has to pay these ITC??
Kindly guide.

Regards,
Suraj

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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10 January 2024 Go through the contents of the notice and verify the facts. In case you have filed 3B beyond the last date for availing ITC for that financial year, then your case falls into section 16(4).
If yes then as of now there is no respite since many High Courts have upheld section 16(4), however recently SC has admitted SLP against Patna HC decision in Gobinda Construction so if you are planning to challenge you may mention this.