GST · Input tax credit
What is the time limit for claiming input tax credit, and what did the 2024 amendments change?
Short answer
Credit for an invoice of a financial year must be claimed by 30 November of the following year, or the date you file the annual return, if earlier (section 16(4)). In 2024 two relaxations were added with effect from 1 July 2017: credit for FY 2017-18 to 2020-21 claimed in returns filed up to 30 November 2021 is valid (section 16(5)), and credit can be claimed after a cancelled registration is revoked (section 16(6)).
The normal time limit (section 16(4))
Credit on an invoice or debit note must be availed by the earlier of:
- 30 November following the end of the financial year to which the invoice relates; and
- the date of filing the annual return (GSTR-9) for that year.
For a debit note, the year that counts is the year of the debit note, not of the original invoice. In practice: claim all credit for FY 2025-26 in a GSTR-3B filed by 30 November 2026, unless you file GSTR-9 earlier.
What the 2024 amendments changed
| Sub-section | Relief |
|---|---|
| 16(5) | For FY 2017-18 to 2020-21, credit claimed in any GSTR-3B filed up to 30 November 2021 is treated as within time. |
| 16(6) | If your registration was cancelled and later revoked, credit for the period in between can be claimed in a return filed up to 30 November following the year, or within 30 days of the revocation order, whichever is later, provided the credit was not already time-barred on the date of cancellation. |
Both apply from 1 July 2017. Tax already paid or credit already reversed because of the old time limit is not refunded.
If you already have an order
Where an order under section 73 or 74 denied credit only for this reason, a special rectification procedure was notified in October 2024. The application had to be made within the time it allowed, which has now passed. If an appeal on the point is pending, the appellate authority applies the amended law. Check your case if you received such an order.
Practical points
- Credit that misses the deadline is lost permanently, even if the supplier paid the tax. Reconcile before 30 November each year.
- An invoice that appears late in GSTR-2B because the supplier filed late is still subject to the same deadline.
- Credit reversed for non-payment within 180 days can be re-claimed on payment, and this re-claim is not subject to the section 16(4) limit.
See the conditions for claiming credit.
Legal basis
- Section 16(4), (5) and (6), CGST Act, 2017 (sub-sections (5) and (6) inserted by the Finance (No. 2) Act, 2024 with effect from 1 July 2017)
- Section 148, CGST Act, 2017, and Notification No. 22/2024-Central Tax (special procedure for rectifying orders)
- Circular No. 237/31/2024-GST (15 October 2024)
Official sources
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