What is GSTR-3B and when is it due?

GSTR-3B is a monthly self-declared summary GST return. For regular taxpayers, it is due by the 20th of the following month. Late filing attracts ₹50/day late fee (₹25 CGST + ₹25 SGST), capped at ₹5,000.

How do I reply to a DRC-01 GST notice?

DRC-01 is a show-cause notice for tax demand. Log in to GST portal, go to Services > User Services > View Additional Notices, select the notice and file a reply within 30 days — either agreeing and paying, or disputing with supporting documents.

What is the late fee for filing GSTR-1 late?

Late fee for GSTR-1 is ₹50/day (₹25 CGST + ₹25 SGST). For nil returns it is ₹20/day. Maximum cap is ₹10,000 per return. GSTR-1 is due by the 11th of each month for monthly filers.

Can I claim ITC on hotel and restaurant bills?

ITC on restaurant food and beverages is blocked under Section 17(5) CGST Act — not claimable. However, ITC on hotel accommodation is allowed if used for business purposes and the hotel provides a GST invoice with your GSTIN.

What is the GST registration threshold in India?

GST registration is mandatory if annual aggregate turnover exceeds ₹40 lakhs for goods (₹20 lakhs for special category states) or ₹20 lakhs for services (₹10 lakhs for special category states). E-commerce sellers must register regardless of turnover.

Section 16(4) ITC Time Limit: Avoid Losing Your Input Tax Credit Forever

sai krishna
Jun 7
2 min read

Section 16(4) of the CGST Act is one of the most important and strictest provisions in GST. It puts a hard time limit on claiming Input Tax Credit (ITC). Missing this deadline means the credit is lost forever.

What Does Section 16(4) Say?

A registered person cannot claim ITC in respect of any invoice or debit note after: - The 30th day of November following the end of the financial year to which such invoice/debit note relates, OR - The date of furnishing the relevant annual return (GSTR-9)

Whichever is earlier.

Practical Example

For an invoice dated May 2023 (FY 2023-24): - Deadline = 30th November 2024 OR date of filing GSTR-9 for FY 2023-24 - If you file GSTR-9 on 15th October 2024, deadline = 15th October 2024 - Any GSTR-3B filed after this date cannot claim this invoice's ITC

What Happens If You Miss the Deadline?

The ITC becomes permanently ineligible. It is not recoverable through: - Amended returns - Rectification - Appeal (unless the Supreme Court intervenes)

The department will raise demand under Section 73/74/74A for ITC claimed after the deadline, with interest and penalty.

Important Amendment — Finance Act 2023

Section 16 was amended to add a proviso: ITC can be claimed for any previous year if: - Returns from October 2023 onward are filed AND - The taxpayer pays the entire outstanding demand

This was a partial amnesty but has strict conditions. Check with your CA if you have missed ITC for FY 2017-18 to 2020-21.

Action Items for Businesses

1. Review your purchase register for FY 2023-24 immediately 2. Identify all invoices not yet claimed in GSTR-3B 3. File before 30th November 2024 (deadline for FY 2023-24 invoices) 4. Do not delay annual return filing — it can inadvertently close your ITC window early 5. Maintain a monthly ITC tracker to prevent missing invoices

Disclaimer: Consult your CA for case-specific advice.