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CS Executive · Tax Laws and Practice · Input Tax Credit and Computation of GST Liability

Gupta Enterprises received an invoice dated 10 February 2025, which pertains to the financial year 2024-25. As per section 16(4) of the CGST Act, 2017, by which date must credit be taken, ignoring any relaxation and assuming the annual return is filed later?

Credit must be taken by 30 November 2025. Section 16(4) bars credit after the thirtieth day of November following the end of the financial year of the invoice, or the furnishing of the annual return, whichever is earlier. The year 2024-25 ends in March 2025.

  1. A30 September 2025
  2. B30 April 2025
  3. C30 November 2025Correct
  4. D31 March 2026

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 relevant annual return, whichever is earlier. The year ends 31 March 2025, so the cut-off is 30 November 2025, as the annual return is filed later. September 2025 was the earlier cut-off before the amendment.

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