Extension of time line for amendment in GST return and claiming ITC

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Extension of time line for amendment in GST return and claiming ITC

Certain amendments were made in the provisions of the CGST Act by the Finance Act, 2022. However, these amendments were proposed to be made effective from a date to be notified later.

Government has now finally issued a notification No. 18/2022-Central Tax dated 28.09.2022to make these amendments effective from 1st October, 2022.

Let us have a short overview of the key amendment:

1. Extension of time limit for correction/amendment in GSTR-1 and GSTR-3B returns

Earlier rectification of any error or omission made in GSTR-3B/GSTR1 return filed during any financial year was allowed till the due date of furnishing of GSTR-3B return for the month of September following the end of the said financial year. Now this time limit is extended till 30th November of the subsequent financial year. Thereby, now such rectification for the financial year 2021-22 can be made till 30th November, 2022 I.e in October month GSTR 3B which has to be filed maximum by 30th November.

  1. Extension of time-limit to avail ITCEarlier the time limit for availing ITC pertaining to a financial year was the due date of furnishing GSTR-3B return for the month of September of the subsequent financial year. Now this time limit is extended till 30th November of the subsequent financial year. Thereby, now ITC pertaining to the financial year 2021-22 can be claimed till 30th November, 2022 I.e in October month GSTR 3B which has to be filed maximum by 30th November.

    3.. Extension of time-limit to issue credit note

    Earlier credit notes in respect of supplies made during a financial year can be issued till the September month of the subsequent financial year. Now this time limit is extended till 30th November of the subsequent financial year. Thereby, now credit notes in respect of supplies made during the financial year 2021-22 can be issued till 30th November, 2022. However, it may be noted that, unlike the due date of claiming ITC, since the time limit in this case was September month and not the due date of filing of September return (i.e. till 20th October), another view is possible that since in respect of issuing credit note for the financial year 2021-22 the time would already expire on 30th September, 2022 (i.e. prior to application of the amendment), extension benefit would not be available. In our view the timeline stands extended.

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