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GST Registered Taxpayers can claim Pending Input Tax Credit
GSTR-3B: Now GST registered taxpayers can claim pending input tax credit relating to past years namely financial year 2017-18, 18-19, 19-20 and 20-21 by filing an online rectification application. GSTN said, "A functionality has now been made available on the Portal for taxpayers to file an application for rectification of such orders issued under section 73/74."
Good news for GST registered taxpayers who filed GSTR-3B to claim pending input tax credit (ITC) for FY 17-18, 18-19, 19-20 and 20-21 but were prevented from claiming it due to due date related issues. Many of these taxpayers received GST demand notice because they did not file GSTR-3B return on or before the deadline. As per the GST law input tax credit (ITC) can't be claimed without filing GSTR-3B return. One issue led to another. Without getting the benefit of ITC their final output tax liability increased unnecessarily.
The government understood this pain point and announced an Amnesty Scheme in Budget 2024, to allow these taxpayers to claim past years' pending input tax credit by following a special rectification process. Subsequently, a circular was issued on October 8, 2024 outlining the working mechanism of this Amnesty scheme. GSTN has now implemented the online rectification filing process from January 07. The deadline for doing this is on or before April 8, 2025.
The Goods and Services Tax Network (GSTN) in a new advisory informed taxpayers who want their pending input tax credit for the specified years, a rectification application is required to be filed to modify the GST tax demand notice which is what prevented the taxpayer from claiming pending input tax credit for the specified financial years.
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