According to the State Goods and Services department, November 30 is the deadline for claiming input tax credit, providing accurate information on ineligible input tax credit, and reversing it for the fiscal year 2022–2023.
The GSTR-3B return filing for the month of October 2023, with a November 20 deadline, is the method that needs to be finished. The entire input tax credit for 2022–2023 that is indicated in the GSTR-2B statements should be utilized by all taxpayers submitting returns using the GSTR-3B form. They should also make sure that any ineligible input tax credit is reversed using the 4B (1) table on the GSTR-3B form. According to the Commissioner of State GST, all qualified taxpayers should take great care in this regard since the accurate declaration of the Integrated GST (IGST) input tax credit is essential for the State’s tax collections.
Before filing their returns for October, taxpayers who entered the input tax credit details in error in the 4B(2) table rather than the 4B(1) table in their prior returns should get in touch with the Taxpayer Service Division at the Office of the Joint Commissioner, Taxpayer Circle, or the district-level GST Intelligence wing.
A credit for inputs allows you to deduct the tax you have previously paid on inputs when paying output tax. Consider that, as a factory, you must pay Rs 450 in taxes on your output (FINAL PRODUCT). There is a 300 rupee tax paid on purchases (input). With just a Rs 150 tax deposit, you can claim an INPUT CREDIT of Rs 300.
When you fall under the GST Act’s coverage, you can access the Input Credit Mechanism. That implies you can claim input credit for the tax you paid on your purchases if you are a registered GST operator, manufacturer, supplier, agent, aggregator, or any of the aforementioned individuals.
Note: Upon receipt of the final lot or installment, credit will be granted against the tax invoice in cases where items are received in lots or installments. Note: If the recipient has already accessed input credit based on the invoice and does not pay the value of the service or tax thereon within three months of the invoice’s issue, the said credit will be added to his output tax liability along with interest.
The fact that input credit is only permitted if your supplier has deposited the tax he has collected from you may be the most revolutionary innovation of the GST. Therefore, before you can claim any input credit, it must be matched and validated. As a result, all of your suppliers must also be GST compliant in order for you to be able to claim input credit on purchases.
Further information on input credit is as follows:
If the tax on inputs > tax on output –> carry forward input tax or claim refund If a tax on output > tax on inputs –> pay balance No interest is paid on input tax balance by the government
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