Page 43 - GSTL_2nd July 2020 _Vol 38_Part 1

2020 ] CAN REVERSED CHARGE OF GST OF F.Y. 17-18 PAID IN F.Y. 20-21 J17

CAN REVERSED CHARGE OF GST OF F.Y. 17-18 PAID IN F.Y. 20-21
CAN REVERSED CHARGE OF GST OF F.Y.
17-18 PAID IN F.Y. 20-21, BE CLAIMED AS
ITC?
CAN REVERSED CHARGE OF GST OF F.Y. 17-18 PAID IN F.Y. 20-21
By
CA Anil Kumar Gupta, FCA, AICWA, LL.B., DISA,
CISA (USA)

During the course of audit of A.Y. 17-18, in a hy-
pothetical case, it is observed that GST payable under re-
verse charge for the period of 17-18 escaped payment till
21-4-2019 and it has been paid with interest in year 2020. The question arises is
whether the assessee, in this case, can take benefit of tax paid under reverse sys-
tem of 17-18 as ITC in current year.
The different schools of thought have arisen in this question and they are
analysed hereinbelow.
Before proceeding in this matter, we would like to draw your kind atten-
tion to the following relevant sections of GST that have direct bearing on the is-
sue : -
(1) Section 16(4) provides that ‘A taxable person shall not be entitled to take
input tax credit in respect of any invoice or debit note for supply of goods
or services after the due date of furnishing of the return under Section 39
for the month of September following the end of financial year to which
such invoice or invoice relating to such debit note pertains or furnishing of
the relevant annual return, whichever is earlier.’
(a) A reading of the above section reveals that the ITC in respect
of invoice or debit note for supply of goods and service or
both for a year can be claimed up to due date of furnishing
the return under Section 39 for the month of September or
annual return of the year whichever is earlier. This implies
that ITC of supplies received by supplier in year 17-18 can be
claimed up to 20-10-2018 (as the impugned year date was ex-
tended up to 23-4-2019).
(b) The stress in this section has been given on the invoice or
debit note pertaining to the concerned year i.e. 17-18.
(2) Sections 16, 39, 31(3)(f) of CGST Act, 2017, Rules 36, 46 and 47 of
CGST Rules, read together prescribed the procedure for claiming
ITC of GST paid by supplier under the reverse charges.
(3) Entire procedure can be divided under the two parts i.e. one for
claiming ITC of GST paid on supply made by registered person and
the second for claiming ITC of GST paid under reverse charge on
supply made by unregistered person.
(A) Position of claiming ITC of GST paid under reverse charge by
supplier in the case supply received from registered person :-
GST LAW TIMES  2nd July 2020  43