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Input tax credit ELIGIBILITY

S.Ramakrishnan (Manager -Finance & Accounts) (62 Points)

21 March 2022

Dear Experts

Good evening. I need opinion on gst input tax credit.

One of our supplier has supplied some jigs and fixtures to us during the month of March 21.

But unfortunately the invoice has not been accounted and reconcilation of books and gstr2a not made.

But after one year the seller is asking payment. now we found we have not accounted and gst credit is not taken. what is the possibility of accounting the same and taking credit of that invoices. please suggest suitable option

Thanks & Regards,

S.Ramakrishan

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10 Replies

hemant sharma (141 Points)
Replied 21 March 2022

The registered person must pay to the supplier, the value of the goods and/or services along with the tax within 180 days from the date of issue of invoice. In the event of failure to do so, the corresponding credits availed by the registered person would be added to his output tax liability, with interest. Interest will be paid @ 18% p.a from the date of availing credit till the date when the amount added to the output tax liability is paid.
However, once the recipient makes the payment of value of goods and/or services along with tax, he will be entitled to avail the credit again without any time limit

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Lotus Agrawal (Practice) (1361 Points)
Replied 21 March 2022

The last date of taking ITC is the due date of GSTR-3B of September month following the FY to which the invoice relates. Hence, as the time has elapsed, you can not take ITC of the bill.

S.Ramakrishnan (Manager -Finance & Accounts) (62 Points)
Replied 21 March 2022

i understand. but is there any other solution to avail the input tax credit

S.Ramakrishnan (Manager -Finance & Accounts) (62 Points)
Replied 21 March 2022

Sir, we have not booked the invoices. Then how will we pay the same to the seller

Lotus Agrawal (Practice) (1361 Points)
Replied 21 March 2022

I don't think there is any other way for taking the ITC. Further, you need to take the invoice in Books as a prior period item and thereafter you can make payment of the same.

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Eswar Reddy S (CFO- at NHTF) (58275 Points)
Replied 21 March 2022

It can be availed on payment basis but if it's already appearing in 2B and annual return is already filed then you have to consider it as an expense..

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Imthias ahamed Kormath (910 Points)
Replied 22 March 2022

U may b contacted seller in correspodically.The payment b settled on the request of the seller and a voucher may b keep in this regard.interest b paid in the 3 b of the September month folloing the financial year.u can not take ITC from that invoice.which will b added in the gst paid as expense. and income side also

sabyasachi mukherjee (27595 Points)
Replied 23 March 2022

No one has given any opinion on the accounting treatment. You cannot raise a invoice unless the same is barred by accounting accepted principles. This will be treated as prior period item.