File GSTR-3B by Nov 30, 2024, to Claim Pending ITC for FY 2023-24
The deadline for claiming Input Tax Credit for Financial Year 2023-24 is fast approaching. The final deadline to claim any outstanding Input Tax Credit or correct errors in GST returns for the financial year (FY) 2023-24 is November 30, 2024. This is a critical date for businesses to maximize their GST benefits and avoid losing out on eligible credits. Here’s a checklist and key actions to ensure compliance and maximize your eligible Input Tax Credit:
- Reverse Charge Mechanism: Verify the correct accounting and payment of Goods and Services Tax under RCM. Claim Input Tax Credit on Reverse Charge Mechanism payments made during the Financial Year 2023-24. Finalize opening Reverse Charge Mechanism Liability by October 31, 2024, with amendments allowed until November 30, 2024.
- Input Tax Credit Claims Cut-off: October 2024 GSTR-3B return is your last chance to claim Input Tax Credit for Financial Year 2023-24. Reconcile invoices from GSTR-2B with your purchase register. Ensure no eligible Input Tax Credit is missed.
- Reclaimed ITC on Vendor Payments: If Input Tax Credit was reversed earlier due to unpaid vendor invoices, reclaim it if payment is now made. Reflect these updates accurately in your books.
- Final Input Tax Credit Reconciliation: Perform a final Input Tax Credit reconciliation for Financial Year 2023-24 by October 2024 return filing to claim remaining eligible credits.
- Supplier Notifications: Notify suppliers of any Input Tax Credit missing in GSTR-2B for Financial Year 2023-24 goods/services. Encourage corrections in their GSTR-1.
- Eligible Expense Input Tax Credit: Don’t Miss Out: Claim Input Tax Credit on eligible smaller expenses like:
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- Bank charges
- Job work fees
- Internet/phone charges
- Travel, courier, and miscellaneous expenses
- These small claims can add up to significant savings.
- Capital Goods Input Tax Credit: Track and claim Input Tax Credit on capital goods, especially if apportioned over multiple years.
- Vendor Compliance: Confirm that all vendors filed their GSTR-3B by September 30, 2024. Reverse Input Tax Credit for non-compliant vendors by October 31, 2024.
- Credit Notes: Issue credit notes for cancelled sales or returns to avoid paying Goods and Services Tax on unrealized or adjusted transactions.
- Invoice Verification: Cross-check all purchase invoices against GSTR-2B for accurate accounting. Reduces audit risks and discrepancies.
- Advances: Accurately record Goods and Services Tax on advances received for goods/services to prevent mismatches.
- TDS/TCS Compliance: Verify correct recording of Tax Deducted at Source / Tax Collected at Source under Goods and Services Tax in your returns.
- Common Input Tax Credit Reversals (Rules 42 & 43): Reverse common Input Tax Credit for Financial Year 2023-24 by the October deadline as per CGST rules.
- Vendor Payments: Ensure vendor payments for Financial Year 2023-24 were made within 180 days.
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- Reverse Input Tax Credit with interest for delays.
- Reclaim Input Tax Credit once payments are made.
- Outward Supplies Reporting via Fix Errors in Returns : Report all missed outward supplies for Financial Year 2023-24 in October 2024 GSTR-1 to avoid discrepancies. Use GSTR-1 to correct outward supply details like: Misclassification of B2B and B2C supplies. Incorrect tax heads or amounts. Adjust invoice details via GSTR-1A for errors or mismatches. Correct previous errors in GSTR-3B by offsetting ITC or reporting accurate liability in the next filing.
- GSTR-9 Classification: Accurately classify Input Tax Credit on inputs, services, and capital goods for Table 6 of GSTR-9.
Key Takeaways from this Blogs on ITC claim:
Reconcile regularly to avoid losing Input Tax Credit. Address discrepancies proactively. Utilize this opportunity to maximize Input Tax Credit benefits and ensure Goods and Services Tax compliance. Stay updated with vendor compliance.
Last Date to Claim Input Tax Credit for FY 2023-24 is 30th November, 2024
Key Deadlines for ITC & outward supply changes
Form | Action | Last Date | Remarks |
GSTR-1 | Amend outward supply errors | November 11, 2024 | Late fee applicable after this date. |
GSTR-3B | Claim ITC or fix errors | November 20, 2024 | File to avoid late fees. |
GSTR-3B | Final filing with late fees | November 30, 2024 | Absolute last date for FY 2023-24 Input Tax Credit claims. |
U/s 16(4) of the CGST Act, 2017, Input Tax Credit for Financial Year 2023-24 can only be claimed by The date of filing the annual return for Financial Year 2023-24 (due December 31, 2024), or November 30, 2024, whichever is earlier. Our Practical RJA Expert Advice, Treat November 30, 2024 as the final cutoff for all ITC claims and corrections.
What Happens if the Deadline is Missed?
- ITC Loss: Any unclaimed ITC post-November 30, 2024, is permanently forfeited.
- Audit Risk: Errors in returns could trigger GST audits or scrutiny.
- Non-compliance Penalties: Delayed corrections or filings may attract interest, late fees, and penalties.
Don’t wait—act now to ensure your records are accurate and complete before the deadlines! Start now to avoid last-minute hassles!
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