GST - ITC Claiming Rules and Its Reversal | Input Tax Credit (ITC) Rules and Its Reversal under GST
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Section 41. Availment of input tax credit
CGST ACT 2017
(1) Every registered person shall, subject to such conditions and restrictions as may be prescribed, be entitled to avail the credit of eligible input tax, as self-assessed, in his return and such amount shall be credited to his electronic credit ledger.
(2) The credit of input tax availed by a registered person under sub-section (1) in respect of such supplies of goods or services or both, the tax payable whereon has not been paid by the supplier, shall be reversed along with applicable interest, by the said person in such manner as may be prescribed:
Provided that where the said supplier makes payment of the tax payable in respect of the aforesaid supplies, the said registered person may re-avail the amount of credit reversed by him in such manner as may be prescribed.
Consequence of non – furnishing of GSTR 3B by Corresponding Supplier
√ Where GSTR 3B pertaining to ITC in respect of Invoice or Debit Note has not been furnished by the Corresponding Supplier till the 30th day of September following the end of the FY in which the ITC in respect of Invoice or Debit Note has been availed
√ The said amount of ITC shall be reversed by the said registered person, while furnishing a return in Form GSTR 3B on or before the 30th day of November following the end of such FY.
Proviso 1
Where the said amount of ITC is not reversed by the registered person in a return in Form GSTR 3B on or before the 30th day of November following the end of such FY during which such ITC has been availed, such amount shall be payable by the said person with interest thereon under section 50.
Proviso 2
Where the said supplier subsequently furnishes the return in Form GSTR 3B for the said tax period, the said registered person may re – avail the amount of such credit in the return in Form GSTR 3B for a tax period thereafter.
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