CBIC has issued a special order no. 02/2018 dated 31st December, 2018 u/s 172 of the CGST Act and made following amendments regarding the provisions of time limit for availing the input tax credit by an assessee.
Provisions before this Order
As per earlier provisions, the input tax credit of invoices issued upto 31st March 2018 can only be claimed upto due date of furnishing the return under section 39 for the month of September 2018.
If any assessee failed to claim the ITC of invoices issued upto 31-03-2018 by 20-10-2018, the whole credit is lapsed.
Provisions after this Order
This order seeks to amend the section 16(4) of the CGST Act and as per provisions of this order, the input tax credit of invoices issued upto 31st March, 2018 can be claimed upto due date of furnishing the return under section 39 for the month of March 2019.
This means that the ITC of such invoices can be claimed upto 20-04-2019.
Click Here to download the full text of Order No. 2/2018 dated 31-12-2018
This is a welcome amendment by the government.
Amit Mundhra CA
The author is a member of ICAI. he can be reached at firstname.lastname@example.org