In a relief to Goods and Services Tax payers during the festival season, the Central Board of Indirect Taxes and Customs (CBIC) has extended the last date for taking input tax credit (ITC) for FY22 from October 20 to November 30.
The due date for issuance of credit notes and declaration in the returns for FY22 has also been extended to November 30.
However, recipients’ ITC can be denied due to a mismatch in the GSTR-1 (monthly Statement of Outward Supplies) & 3B (a month-based summary return showing GST liabilities) or GSTR-2B (an auto-drafted ITC statement) & 3B of suppliers.
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GST registration may be cancelled where a registered person does not file the returns for a continuous tax period as may be prescribed instead of a continuous period of six months.
If the recipient claims such ITC which has not been filed by the supplier, he shall be entitled to pay an equal amount by way of debit, along with applicable interest.
If the supplier makes payment of GST, the recipient may re-avail such ITC.
“These changes as per the notification would be effective from October 1 2022.
“The applicability of these changes to the compliances for FY22 would need to be analysed in detail.
“In case the said changes are effective for FY22 it will provide significant relief to the industry,” said Saurabh Agarwal, Tax Partner, EY India.