My client recieved a notice that you have availed ITC in January 2019, February 2019 and March 2019 in GSTR 3B Returns for FY 2018-19 after 21-10-2019 which is violation of provisions of Section 16(4) of CGST Act 2017. Actually my client has taken ITC of respective months only and not taken any ITC of F Y 2017-18 but filed after 21-10-2019 with late fees. kindly guide me if there is any violation of provisions of Section 16(4) of CGST Act 2017.

Reply— 

As per Section 16(4) of CGST Act, 2017, A registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both—

a) After the due date of furnishing of the return under section 39 (GSTR-3B) for the month of September 2019; or

b) Furnishing of the relevant annual return (GSTR-9) whichever is earlier.

Therefore, according to above provisions taxpayer cannot claim ITC pertaining to financial year 2018-19 after 20.10.2019.