Will ITC on purchases made in 2016-17 be allowed to be carried forward beyond September 2017
have a query relating to time limit for availing ITC.
Like for example:
In the FY 2016-17 I purchased raw materials and used it for production. Now on these purchases I have a total input tax credit of INR 1 lakh as on 31st March 2017.
So if uptil 30 September 2017 ( I.e. September of the following F.Y.) I am unable to utilise this credit of INR 1 Lakh fully, will it lapse??
Because it is possible that all my stock as on 31st March 2017 does not get sold by September.. but for that you cannot penalise the assessee.. the ITC on all the raw materials used for production of those goods still lying in stock as on 30th September should be provided.
Yes You can carry forward unutilized input credit shown in the last return of existing law.