GST Due Date to Submit ITC Claims and GST Corrections for FY 2023-2024

Businesses have fewer than three weeks, until the deadline of November 30, to make claims for pending Input Tax Credit (ITC) and correct errors or omissions in GST returns for the financial year 2023-24. The circular dated October 15 outlines new adjustments to ITC claims and GST compliance corrections applicable for this period, advising businesses on the potential impacts on document filing.

The Central GST (CGST) Act 2017 stipulates that a registered taxpayer is eligible to claim ITC on invoices or debit notes credited to their accounts by November 30 of the financial year following the one to which the returns pertain, or upon furnishing the relevant GSTR-9 or GSTR-9C annual return, whichever comes earlier. These adjustments must be reported either through the monthly return for October, submitted via GSTR-1 and GSTR-3B, or through the annual return using GSTR-9 or GSTR-9C.

Understanding GSTR-1 and GSTR-3B Filing Requirements

Most taxpayers are required to file GSTR-1 for reporting outward supplies and tax liabilities, while GSTR-3B serves as a summary return for declaring and paying GST liabilities for each tax period. Regular taxpayers must file Form GSTR-3B for each tax period, with the due date on the 20th day of the following month for monthly filers.

Although the GSTR-3B for October’s monthly return is due on November 20 and GSTR-1 on November 13, both forms can be submitted until November 30 with a late fee. Additionally, although annual returns for FY24 can be filed until December 31, the CGST Act’s wording emphasizes the earliest of these deadlines, making November 30 the effective due date for corrections to be incorporated.

Key compliance actions that businesses need to complete to finalize GST compliance for FY24 include: ITC claims on relevant invoices, issuing credit notes to adjust output tax liability, revising GSTR-1 to correct errors or omissions, and ensuring final revisions of October returns by November 30, 2024.

These corrections can also be submitted with the annual return, offering a final chance to rectify discrepancies in monthly filings. However, businesses are cautioned about recent changes to the GSTN portal, which may prevent the correction of some omissions due to new system restrictions.

October 15 Circular and ITC Provisions

The October 15 circular provides further clarification. For instance, businesses under investigation for wrongful ITC claims that have not received demand notices are still allowed to file for ITC based on the proper office’s order. In cases where demand notices have been issued, the Adjudicating Authority will issue a final order according to the updated legal provisions. This applies to appeals as well.

As the due date approaches, businesses should complete these steps to ensure compliance and avoid potential liabilities. Accurate and timely GST filing remains essential for all registered taxpayers as they finalize ITC claims and compliance for the financial year.