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

Mehta Industries, a registered person, received an invoice dated 10 February 2026 pertaining to FY 2025-26 (the financial year ending 31 March 2026). It files the relevant annual return only on 15 December 2026. Applying section 16(4), what is the last date up to which credit on this invoice can be taken?

The last date is 30 November 2026. Section 16(4) cuts off credit at the thirtieth of November following the financial year or the filing of the annual return, whichever is earlier. Here the return is filed later, on 15 December, so November 30 governs.

  1. A30 November 2026Correct
  2. B30 September 2026
  3. C15 December 2026
  4. D31 March 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 the furnishing of the relevant annual return, whichever is earlier. The financial year ends 31 March 2026, so the date is 30 November 2026. The annual return was filed later on 15 December 2026, so it does not apply. Therefore 30 November 2026 is the earlier date.

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