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Notice u/s 73

rakesh (trainee) (86 Points)

24 February 2020

I got registration under GST Dec 2018 and return file for the month of Dec 2018 to March 2019 in Nov 2019. in GSTR3B of above period input claim and all input reverse, hence there is no any input carry forward in my credit ledger. I have also not filed annual return for 2018-19. Now I get notice from department u/s 73 and demanding the said tax which is shown in GSTR3B. in notice they saying that you are not eligible for ITC and it is not accordance under sec 16. Now what I do ? please guide me

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10 Replies

Shrikant Toshniwal (TAX CONSULTANT) (1109 Points)
Replied 25 February 2020

Dear frd , As u file return in Nov 19 for period dec18 to mar19 ITC for that period is unavailable as per law

As section 16(4) of CGST Act, 2017, which states that the last date for taking the input tax credit in respect of any invoice or debit note pertaining to a financial year is the due date of furnishing of the return under Section 39 for the month of September following the end of the financial year or furnishing of the relevant annual return, whichever is earlier.

it is big issue chances that gst committee will extend the date .

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 25 February 2020

Dear Rakesh :
Kindly clarify whether you have availed the ITC for the period You mentioned ??

rakesh (trainee) (86 Points)
Replied 25 February 2020

Sir I filed the my return in month of nov 2019 but as per sec 16(4) it is not cleared that if I filled my return after September then I can't take credit. As per Sec 16(4) if I filled my return before sept. and any invoice shall left for taken into account and I claim that ITC then I got notice, I understand this. in my case in GSTR3B I show my ITC and also I reversed it in same return hence I didn't claim in ITC. if I claim ITC then it is reflected in my credit ledger but it is not shown. Now as per govt. notification 74/2019 all pending GSTR3B and GSTR 1 from July 2017 to Nov 2019 due date is 19th Dec 2019 and it is also increased with notification no. 4/2020 till date 17th Jan 2020 . In this case can I not claim ITC in my GSTR 3B? please guide.

Shrikant Toshniwal (TAX CONSULTANT) (1109 Points)
Replied 25 February 2020

Dear Frd ,

This Notification will not helps u to claim Itc if u fill gstr3b after the date specified in sec 16.

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 25 February 2020

dear rakesh

no cannot even though the date being extended for gstr 3b.

as furnishing of gstr 3b is prescribed in section 39 of cgst act & availing of ITC in section 16 of cgst.

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rakesh (trainee) (86 Points)
Replied 25 February 2020

Dear respected sir, as you mentioned above I can't take ITC . But if I show ITC in Gstr 3B and if I reversed the same in same return and then I got notice from department. Now my question is CAN department consider it's because there is no credit reflect in my credit ledger due to reverse of ITC. My 2nd question is if I pay the demand and in next GSTR3B ITC WHICH is reversed in earlier return is again restore? My 3rd question is if I restore this ITC in my books then it is shown in my credit ledger and can I claim refund the same ITC? Please guide me.

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 25 February 2020

Dear Rakesh
I fully agree with you , if you have already reversed in same return , then there is no point of issue SCN under Section 73 of CGST Act.

Hence need to visit your jurisdiction Tax Officer & present your case with all requisite documents.

1 Like

chandan mahto (64 Points)
Replied 14 March 2020

I also got Show Cause notice under Section 73 of CGST Act in 3 pages, my show cause notice is without any DSC, DIN or ARN, So Is it mandatory to reply the same ??? each notice for Rs.6000 TAX+20000 Penlaty, DRC-1 and DRC-7 challan also issued separately

rakesh (trainee) (86 Points)
Replied 15 March 2020

Dear Chandan, In my case when I get notice u/s 73 and DRC 1, then I give reply under due date mentioned in notice but I also get DRC 7 order with Tax, penalty and interest. But my case is related for Delay return and wrong ITC claim as per sec 16(4). I reverse my all ITC in my same return in which ITC claim. when I went my jurisdiction office and meet jurisdiction officer, then he says me after issue of DRC 7 there is no chance to revoke this, but due to reply under due date and ITC is also reverse by me earlier, only interest charged on me and I am liable only for intt. Then I advise you please meet your jurisdiction officer with all documents.