When ITC is Said to be Availed : CBIC Clarify

By | January 4, 2019
(Last Updated On: January 4, 2019)

When ITC is said to be Availed under GST Act ?

Para No 11 of  Circular No 79/50/2018 GST Dated 31st December 2018

Input tax credit can be said to have been “availed‟ when it is entered into the electronic credit ledger of the registered person.

Under the current dispensation, this happens when the said taxable person files his/her monthly return in FORM GSTR-3B.

Thus No Penalty can be raised under GST ACT for wrongly availing ITC as entry has been reversed under Books of Accounts without claiming under GSTR 3B

Entry Passed in Books on 01st January 2019

Car Purchased         1000000

IGST A/c Dr                180000

                    To Vendor A/c       1180000

Entry Passed in Books on 05st January 2019

Car Purchased         180000

                    To IGST Act       180000

(Being IGST Wrongly availed and revered )

Leave a Reply

Your email address will not be published. Required fields are marked *