The Goods and Services Tax Network (GSTN) has introduced a new functionality allowing taxpayers to file rectification applications to claim pending Input Tax Credit (ITC) for the financial years 2017-18 through 2020-21. This initiative aims to address issues faced by taxpayers who were previously unable to claim ITC due to missed deadlines for filing GSTR-3B returns.
Eligibility Criteria:
- GSTR-3B Filing Deadline: Taxpayers must have filed their GSTR-3B returns for the relevant tax periods on or before November 30, 2021.
- Pending ITC Claims: The pending ITC pertains to the financial years 2017-18, 2018-19, 2019-20, and 2020-21.
Application Process:
- Access the GST Portal: Log in to the GST portal at www.gst.gov.in.
- Navigate to Application: Go to ‘Services’ > ‘User Services’ > ‘My Applications’.
- Select Application Type: Choose ‘Application for rectification of order’ and click on ‘NEW APPLICATION’.
- Download Annexure A: A hyperlink is provided to download the proforma in Annexure A in Word format. Fill in the details of the demand order and the ITC wrongly availed.
- Upload and Submit: Upload the completed Annexure A and submit the application through the portal.
Important Deadlines:
- Application Submission: Taxpayers must file the rectification application within six months from October 8, 2024, i.e., by April 8, 2025.
- Processing Timeframe: The GST officer will process the application within three months from the date of filing.
Implications:
Upon successful rectification, the pending ITC for the specified periods will be credited to the taxpayer’s GST ledger. While this credit cannot be directly refunded to a bank account, it can be utilized to offset current or future GST liabilities.
Conclusion:
This rectification facility provides a significant opportunity for eligible taxpayers to claim previously unclaimed ITC, thereby improving cash flow and compliance. Taxpayers are encouraged to review their past returns and utilize this facility before the April 8, 2025, deadline.