File GSTR-3B by November 30, 2024, to Claim Any Pending ITC for FY 2023-24

The deadline is approaching for all GST-registered businesses to claim any remaining input tax credit (ITC) for the financial year (FY) 2023-24 or to correct errors in previously filed returns. The critical date is November 30, 2024, which is the last day to file the GSTR-3B form for claiming unclaimed ITC or correcting earlier returns. Missing this date could mean permanently losing the chance to claim ITC, which would leave businesses without that tax offset.

How to Claim Outstanding GST ITC or Fix Errors for FY 2023-24?

If you need to claim any pending ITC, it must be done through the GSTR-3B form. If there were errors or omissions in previous returns, these can be corrected through GSTR-1. Mistakes in GSTR-1 can be amended in a subsequent GSTR-1 filing, but GSTR-3B is still the main form for claiming ITC. The last date for filing GSTR-3B without any late fee is November 20, 2024, while GSTR-1 should be filed by November 11, 2024. However, both forms can be filed until November 30, 2024, subject to a late fee.

The Final Date for Claiming Available ITC

According to Section 16(4) of the CGST Act, 2017, ITC related to invoices for FY 2023-24 must be claimed by either November 30, 2024, or the date of filing the annual return, whichever comes first. Practically, this means ITC for FY 2023-24 can be claimed without penalty in the October 2024 GSTR-3B, with a preferred filing date of November 20, 2024. After that, businesses can still file GSTR-3B with a late fee until November 30, 2024.

Tax experts commonly advise treating November 30, 2024, as the final deadline for filing any ITC claims related to FY 2023-24. The annual return, due by December 31, 2024, will serve as the final record for the year.

What Happens if the Deadline is Missed?

If GSTR-3B isn’t filed by November 30, 2024, businesses may lose the right to claim ITC, even if the supplier’s tax payment was delayed. GST rules state that ITC claims after the due date won’t be permitted, even if compliance comes later. For instance, if a manufacturer misses the deadline, they may lose out on valuable ITC benefits permanently.

November 30, 2024, is also the Last Date for Error Corrections

In addition to ITC claims, taxpayers have until November 30, 2024, to correct any mistakes or omissions in their FY 2023-24 GST returns. Errors in GSTR-1, like misclassifying B2B as B2C or using incorrect tax heads, can be fixed in the next GSTR-1 filing. Mistakes in GSTR-3B can also be corrected in future filings if they’re identified later.

To help with this process, the government provides GSTR-1A, which lets taxpayers adjust invoice details reported in GSTR-1 before filing GSTR-3B. This feature is helpful if a business missed classifying certain supplies, reverse charge mechanism payments, or TCS details.

Key Compliance Tips for November 30, 2024

• ITC claims for FY 2023-24 should be filed in GSTR-3B between October 1, 2024, and November 30, 2024. Any claims after November 30 will not be allowed.
• Errors in GSTR-1 and GSTR-3B should be corrected by November 30, 2024, to avoid penalties and additional tax liabilities.

As the deadline nears, businesses are advised to review all pending ITC claims and any discrepancies in their filings. Making these corrections by November 30, 2024, will help secure valuable ITC and avoid potential penalties.