Extend due date to avail Input Tax Credit in GST for FY 2017-18 to 31 December

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Extend Due date for avail Input Tax Credit in GST for FY 2017-18 to 31 December


The petition is basically for considering the practical difficulties  being faced by the trade and  industry  in availing input tax credit  under  the GST laws. The time limit to avail Input Tax credit is “the due date of furnishing of the return  for the month of september following the end of financial year i.e 20th October 2018 or furnishing of the relevant annual return, whichever is earlier” So for FY 2017-18 the cut-off date is 20th October 2018 to reconciliation and availment of input tax credit


Following are the justification for date extension

1.      First year of implementation of GST Law and GST law has yet to attain stability and frequent notifications and circulars are creating less clarity and more confusion


2.      SME there is still confusion with respect to eligibility and availment of ITC


3.      GSTR-1 returns was extended from time to time, leaving them with little time to reconcile the purchases or taking up the cases of any mistakes or mismatches with their vendors. At least 30-35 % of the registered tax payers who have filed GSTR-3B returns have not filed the GSTR-1 returns. Additional time is required as many have failed to take proper credit and reconciliation


4.      The system for downloading of GSTR 2A from GSTN was provided only in July- August 2018 with initial technical glitches in downloading GSTR 2A


5.      Interest rate in case of wrong availement of Input Tax Credit are as high as 24%, hence many tax payers require time to identify, reconcile and claim correct input tax


6.      As the date of GST audit is 31 December there can be instances where proper


In view of the above difficulties faced by trade and industry we request Finance Minister and Chairman GST Council Shri Arun Jaitely to consider extending the due date for claiming the input tax credit for invoices pertaining to Financial Year 2017-18 till 31st December, 2018