Importance of GSTR - 3B of September Month Each Year.

One of the primary reason for GST implementation was the free flow of credit to businesses , hence reducing the cost by way of availment of credit to the businesses which was erstwhile limited in VAT , Service Tax and Excise .

In order to provide businesses with full access to credit , GST was introduced , but do you know the following points?

1. Availment of credit is your right as per constitution and GST Acts .

2. It is a right which is time bound , and only becomes vested if certain conditions are followed.

3. If times passes , the right is lapsed and credit cannot be taken.

Ques: Can we avail the credit of FY 2019-20 , which was not availed by mistake or the supplier has not uploaded the invoice in GSTR 1 ?

Ans : The answer to this question is affirmative but time bound , why?

Because of the following

Section 16 of GST Act 2017 , States the time limit for availment of credit which is as under

Time limit for availing ITC: A registered person shall not be entitled to take Input tax Credit in respect of Invoice or Debit Note for supply of goods or services or both

• after the “Due Date of furnishing of Return u/s 39 for the month of September following the end of Financial Year to which such Invoice pertains” or

• “Date of furnishing of relevant Annual Return”, whichever is earlier.

Hence , the September month return of next financial year relevant to year of which credit is , becomes very important .

If you have any eligible credits , which was left over to be availed can be adjusted in GSTR 3B upto due date of September month of next year , unless the date extended by way of notification.

Relevance of GSTR-3B of Sept, 2020 could be identified from following:

# Last opportunity to claim ITC of Invoices of period FY 2019-20

# Any mistake/error in GSTR-1’s filed during FY 2019-20 can be rectified

# Issuing Debit/Credit Notes for invoices of FY 2019-20

# Input Reconciliation (2A/3B) to avail any unaccounted ITC or to intimate suppliers to upload invoices if not reflecting in GSTR-2A

# Fulfill restrictions as per Rule 36(4), for the months Feb to Aug, 2020 cumulatively & Sept, 2020 independently

# Reverse ITC if payments are pending to suppliers of invoices dated before 31st of March, 2020

# Reconciliation of books & GST Returns of period FY 2019-20 to identify missed income if any.

Have you adjusted your credits?

Any doubts , join as member and comment below.

Team Taxgen

Kindly go through the disclaimer before taking any action on the basis of above information.