Page 16 - Ch14 _RETURNS

3) Ü Every registered person who is required to furnish return u/s 39(1) and whose registration has

been surrendered or cancelled
Ü The Final return has to be filed within 3 months of:
† Date of cancellation or
† Date of order of cancellation, whichever is later

09. Sec 41 :- Claim of ITC and Provisional acceptance thereof
CCP 14.09.22.00
Ms Neha, a registered taxable person from Delhi, has purchased goods from Mr. Umesh (a registered
person from Mumbai). Mr. Umesh has not paid the amount of GST to the government. Neha took the

ITC while filing the return. Is Neha required to reverse the ITC. Mr. Umesh paid the GST amount to the
government after 3yrs. Can Ms. Neha take the ITC now.
Answer :-
Legal Provision:
Ü As per Sec 41 of CGST Act, If a registered person has claimed the ITC of the inward supply for which the

supplier of the same has not paid the taxes, the amount of ITC claimed is required to be reversed along
with interest by the registered person.
Ü Provided that the ITC can be re-claimed when the said supplier makes the payment of taxes to the

government.
Discussion & Conclusion:
Ü In this case, the amount of ITC claimed by Ms. Neha is required to be reversed along with interest. However,
when Mr. Umesh makes the payment of GST to the government, Ms. Neha will be allowed to re-claim the
same amount in her GSTR 3B.

Ü In the second case, if Mr. Umesh pays the amount of GST after 3 years, then Ms. Neha would be eligible to
re-claim it, as there is no any time limit to re-claim the ITC.

10. Sec 46 & 47: Default / Delay in Furnishing Return:
CCP 14.10.23.00
Miss Vaishno, a registered tax payer paying tax under regular scheme failed to file the return for the
month of January, 20XX. Explain the legal recourse available to the tax officer, if any.
Answer:-

Ü As per Sec 46 of CGST Act 2017, The proper officer has to first issue a notice to the Miss Vaishno requiring
him to furnish the return within a period of 15 days.
Ü If Miss Vaishno fails to file return within the given time, the proper officer shall proceed to assess the tax

liability along with applicable interest and penalty payable by the defaulter to the best of his judgement
taking into account all the relevant material available with him.

CCP 14.10.24.00
Explain who is required to furnish final return, time limit for filing of final return and late fee for delay in

filing final return. [CA Inter July 21 Exam]
Answer:-
Ü Every registered person who is required to furnish a return and whose registration has been surrendered or

cancelled is required to file a final return.

260 CA VISHAL BHATTAD 09850850800 www.vsmartacademy.com V’Smart Academy