Section 41 - Claim of self assessed input tax credit and provisional acceptance thereof
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Section/Rules/N/C/O |
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Purpose of Section 41 |
NA |
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RP shall take self assessed eligible ITC in his return |
Section 41(1) |
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ITC available in ECrL shall be utilised for payment of output tax |
Section 41(2) |
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Reversal of ITC in case of non-payment of tax by the supplier and reavailment thereof after payment of tax by supplier |
Section 41(2) |
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Reversal of availed ITC on inward supplies on which tax has not been paid by supplier |
Rule 37A |
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Reversal of ITC with interest if reversal made after 30th Nov following the end of such FY |
1st Proviso to Rule 37A |
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Re-availment of said ITC on payment of tax by the supplier on said supplies |
2nd Proviso to Rule 37A |
41.0 Purpose of Section 41
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Section 41 provides that self assessed ITC shall be availed in return and same shall be reversed on non payment of tax by supplier |
41.1 RP shall avail self assessed eligible ITC in his return
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Section 41(1) RP shall, subject to such conditions and restrictions as may be prescribed, be entitled to avail the credit of eligible input tax, as self-assessed, in his return and such amount shall be credited on a provisional basis to his electronic credit ledger. |
41.1.1 ITC available in ECrL shall be utilised for payment of output tax [Effective upto 30-09-2022]
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Section 41(2) The credit referred to in sub-section (1) shall be utilised only for payment of self assessed output tax as per the return referred to in the said sub-section. |
41.2 Reversal of ITC in case of non-payment of tax by the supplier and reavailment thereof after payment of tax by supplier
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ITC availed by a RP u/ss (1) in respect of such supplies of goods or/and services, the tax payable whereon has not been paid by the supplier, shall be reversed along with applicable interest, by the said person in such manner as may be prescribed: |
41.2.1 Reversal of availed ITC on inward supplies on which tax has not been paid by supplier
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Where ITC has been availed by a RP in GSTR-3B for a tax period in respect of such invoice/ DN, the details of which have been furnished by the supplier in GSTR-1, but GSTR-3B for the same tax period has not been furnished by such supplier till the 30th day of Sep following the end of FY in which the ITC in respect of such invoice/DN has been availed, the said ITC shall be reversed by the RP, while furnishing GSTR-3B on or before the 30th day of Nov following the end of such FY. |
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If supplier furnishes GSTR-1 but does pay tax through GSTR-3B of any tax period till 30th Sep following the end of relevant FY, the recipient has to reverse such ITC without interest on or before 3oth Nov following the end of relevant FY. |
41.2.2 Reversal of ITC with interest if reversal made after 30th Nov following the end of such FY
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where the said amount of ITC is not reversed by the RP in GSTR-3B on or before the 30th day of Nov following the end of such FY during which such ITC has been availed, such amount shall be payable by the said person along with interest thereon u/s 50 |
41.2.3 Re-availment of said ITC on payment of tax by the supplier on said supplies
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1st Proviso to Section 41(2) Where the said supplier makes payment of the tax on aforesaid supplies, the said RP may re-avail the amount of credit reversed by him in such manner as may be prescribed. |
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where the said supplier subsequently furnishes GSTR-3B for the said tax period, the said RP may re-avail the amount of such credit in GSTR-3B for a tax period thereafter. |
[1] Section substituted by section 106 of the THE FINANCE ACT, 2022 and made effective from 01-10-2022 by Notification No. 18/2022-Central Tax dt. 28-09-2022.
[2] Rule inserted by Rule 6 of The CGST(5th A)R, 2022 vide Notification No. 26/2022-Central Tax dt. 26-12-2022.
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