Page 6 - Chap7 ITC

Answer:- Legal Provision: As per section 16(6), If the registration of a registered person is cancelled u/s 29, and
subsequently cancellation is revoked by any order u/s 30, and availment of ITC was not restricted u/s 16(4) on the
date of cancellation, then such person is entitled to take ITC on such invoice or debit note in a return u/s 39:
(i) filed up to 30th November following the financial year to which such invoice or debit note pertains, or date
of furnishing annual return, whichever is earlier or
(ii) for the period from the date of cancellation of registration or the effective date of cancellation of
registration, as the case may be, till the date of order of revocation of cancellation of registration, where
such return is filed within 30 days from the date of order of revocation of cancellation of registration
whichever is later.
Discussion & Conclusion:
Ü In the given case, Aakarsha Traders is entitled to claim ITC in respect of invoices issued in February and March
of the preceding financial year in a return u/s 39:
Ø filed up to 30th November of current financial year or
Ø (return filed for the period from effective date of cancellation of registration till the date of order of
revocation of cancellation of registration, within 30 days of revocation of cancellation i.e., up to 14th
January.
whichever is later.
Ü Thus, Aakarsha Traders is entitled to claim input tax credit (ITC) in respect of invoices issued in February and
March of the preceding financial year in the return for the month of September furnished on 21st December of
current financial year.

QRPs:- ITC must be claimed by the later of:
† 30th Nov of the following year or Annual Return filing date.
† Return filed for the cancelled period, if submitted within 30 days of revocation.

03: Combine Questions on Section 16:

Q.5
XYZ Ltd., a registered supplier, is engaged in the manufacture of Tanks. The company provides the
following information pertaining to GST paid on the purchases made/input services availed by it during the
month of October, 20XY:-

Sr.No. Particulars GST Paid(₹)
1. Purchase of Machinery where debit note is issued 1,15,000
2. Input purchased was directly delivered to Mr. Joe, a job worker & a registered supplier 80,000
3. Computers purchased (Depreciation was claimed on the said GST portion under the 50,000
Income-Tax Act, 1961)

4. Purchase of iron which is used as a raw material [Goods were received in two 2,50,000
instalments - first in October and the second in November]
5. Purchase of accessories which were delivered directly to the dealers of the company on 90,000
the direction of XYZ Ltd. [Only invoice was received by Dina Ltd.]

6. Machinery purchased to be used in the manufacturing process 3,00,000
7. Input Services in which One invoice dated 20.01.20XY on which GST payable was 2,25,000
₹ 50,000 has been received in October, 20XY

Determine the amount of ITC available to M/s. XYZ Ltd. for the month of October, 20XY by giving brief
explanations for treatment of various items. Subject to the information given above, all the conditions
necessary for availing the ITC have been fulfilled & The annual return for the financial year 20XX-XY was
filed on 15th September, 20XY.

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