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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Input Tax Credit and Computation of GST Liability

Anand Pvt Ltd has a tax invoice dated 10 February 2026 (FY 2025-26) for goods received and for which all other conditions of Section 16 are met. It did not claim credit in any return. Applying Section 16(4), by which date must it take the credit, assuming its annual return is furnished later than that date?

Anand must take the credit by 30 November 2026. Section 16(4) bars credit after the thirtieth day of November following the financial year to which the invoice pertains, or annual return furnishing, whichever is earlier. Here the annual return comes later, so 30 November 2026 governs.

  1. A30 September 2026
  2. B30 November 2026Correct
  3. C31 March 2027
  4. D30 November 2027

Explanation

Section 16(4) bars credit after the thirtieth day of November following the end of the financial year to which the invoice pertains, or furnishing of the annual return, whichever is earlier. FY 2025-26 ends 31 March 2026, so the date is 30 November 2026; the annual return is later, so the earlier date applies. 30 September is the older, superseded limit.

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