Last reviewed: 30 September 2026. Every year a good number of registered businesses lose input tax credit that was legally theirs, not because the purchase was ineligible but because the claim was made a return too late. For FY 2025-26 the cut-off is 30 November 2026, and with the annual return also in play, the practical deadline for many taxpayers is earlier than they think. This note sets out the rule, the dates that follow from it, three worked examples and a clean-up routine you can run in October.
What Section 16(4) actually says now
Section 16(4) bars a registered person from taking ITC on an invoice or debit note after 30 November following the end of the financial year to which the invoice or debit note pertains, or after the date of furnishing the annual return for that year, whichever is earlier. The 30 November formulation came in through Finance Act 2022 with effect from 1 October 2022; before that, the outer limit was the due date of the September return. That older wording still circulates on many aggregator sites, which is why you will occasionally see a client quote "20 October" for FY 2025-26. It is not the current rule.
Three features of the text matter in practice. First, the test is the financial year to which the invoice pertains, which follows the invoice date and not the date it reached your books. Second, the limit applies to the claim, meaning the credit must appear in a return furnished within the window. Third, the words "whichever is earlier" bring GSTR-9 into the analysis, which most small businesses overlook.
Dates that follow from the rule (FY 2025-26)
| Date | What happens | Who it affects |
|---|---|---|
| 30 September 2026 | Test date for Rule 37A: if a supplier has not furnished the GSTR-3B for the period in which your credit relates, that credit is to be reversed by you | Every recipient with credit availed on supplier invoices for FY 2025-26 |
| 22 or 24 October 2026 | QRMP quarterly GSTR-3B for July-September 2026 (Maharashtra falls in the 22 October category; confirm your state on the portal) | QRMP filers: the last scheduled return before the cut-off |
| 20 November 2026 | Monthly GSTR-3B for October 2026 (normal due date) | Monthly filers: last regular return inside the window |
| 30 November 2026 | Outer limit under Section 16(4); also the date by which Rule 37A reversal should be made in the return, to avoid interest exposure | All taxpayers |
| 31 December 2026 | Normal due date for GSTR-9 for FY 2025-26 (subject to any extension notified); filing earlier closes the ITC window earlier | Taxpayers filing annual returns |
The November 2026 monthly GSTR-3B falls due on 20 December 2026, after the window. Credit for an FY 2025-26 invoice that you first include there is out of time, even though the return itself is filed on time.
Worked example 1: a routine catch-up claim
A Thane manufacturer received a machine-maintenance invoice dated 12 February 2026 for ₹10,00,000 plus 18% GST (₹1,80,000: CGST ₹90,000 and SGST ₹90,000). The supplier filed GSTR-1 in March and the invoice reflects in GSTR-2B, but the accounts team parked it as "under verification" and never claimed it. The invoice belongs to FY 2025-26, so the credit can still be taken in the October 2026 GSTR-3B, due 20 November 2026, provided GSTR-9 for the year has not been filed and the credit is still accepted in the IMS. If it slips past 30 November 2026, the ₹1,80,000 becomes a permanent cost.
Worked example 2: the early GSTR-9 trap
A trading firm has turnover above ₹2 crore and decides to clear the annual return early and files GSTR-9 for FY 2025-26 on 15 November 2026. Two purchase invoices from March 2026, with tax of ₹2,40,000, were entered late in the books and had not been claimed. Because the annual return was furnished before 30 November, the window closed on 15 November. The credit is lost even though 30 November had not arrived. The fix is procedural: no GSTR-9 until the ITC register is reconciled and signed off.
Worked example 3: the late-arriving invoice
A supplier issues an invoice dated 28 March 2026 but sends it in December 2026. The invoice pertains to FY 2025-26 and the window ended on 30 November 2026. The recipient cannot claim the credit, and asking the supplier to re-date the invoice would be an attempt to shift the financial year and is not a safe course. The realistic remedy is commercial: where the delay breaches the supply contract, recover the tax cost from the supplier. This is also a reason to put invoice-delivery timelines in vendor terms.
Related deadlines that travel with the 30 November date
| Item | Position |
|---|---|
| Credit notes (Section 34) | A supplier can reduce output tax on a credit note only up to 30 November following the financial year or the annual return date, whichever is earlier. The recipient's corresponding reversal follows the same logic. A post-sale discount credit note issued after that date can leave the supplier paying tax on the original value. See our note on post-sale discounts and ITC reversal under Circular 251. |
| Debit notes | Tested by the date of the debit note, not the original invoice. |
| Rule 37 (180 days) | ITC is reversed if the supplier is not paid within 180 days of the invoice date, and can be re-availed on payment. This is a separate condition from Section 16(4), and both must be met. |
| Rule 37A | If the supplier has not filed GSTR-3B by 30 September following the financial year, the recipient reverses the corresponding credit in a return furnished by 30 November. The credit can be re-availed after the supplier files and pays. |
| Section 17(5) blocked credit | Filing within time does not validate credit that is blocked. Review the Section 17(5) list before you claim anything in a rush. |
Why the IMS and hard-locking make October more important
From the July 2026 period, GSTR-3B is populated from GSTR-2B and the credit that can be taken follows what you have accepted in the Invoice Management System. That leaves little room to fix a mismatch on 19 November. Pending and rejected invoices in the IMS for FY 2025-26 should be resolved with suppliers now, not at return time. Our guide to IMS and GSTR-3B hard-locking has a monthly routine, and the nine-check ITC reconciliation covers the return-side controls.
October 2026 clean-up checklist
- Export the purchase register for April 2025 to March 2026 and tag each invoice: claimed, not claimed, blocked, reversed, disputed.
- Match every "not claimed" invoice with GSTR-2B and the IMS status; ask suppliers to file where an invoice is missing.
- Rank unclaimed credit by value and claim eligible credit in the October 2026 GSTR-3B (QRMP filers: check whether the July-September return can still be furnished or amended in time).
- Run Rule 37A on supplier non-filers as on 30 September 2026 and reverse by 30 November 2026.
- Run the Rule 37 180-day payment test on open creditors.
- Confirm credit notes and debit notes for FY 2025-26 are issued and reported before 30 November.
- Hold GSTR-9 until the above is signed off, and document that hold in the file.
- Record write-offs for any credit that cannot be saved, with the reason, so the accounts and the annual return agree.
Common mistakes we see
- Relying on an aggregator that still shows the September-return rule.
- Treating the receipt date or booking date as the invoice's financial year.
- Filing GSTR-9 as an early "housekeeping" step.
- Assuming the November GSTR-3B can still carry FY 2025-26 credit.
- Claiming blocked or ineligible credit at the last minute and creating a Section 16(1)/17(5) exposure, with interest and a possible notice under Section 73 or 74 later.
Assumptions and practical position
This note assumes a regular taxpayer with no special relaxation notified by the Government for FY 2025-26. Due dates and any extension for GSTR-3B or GSTR-9 should be checked on the GST portal before you rely on them. Whether ITC on imports of goods through a bill of entry is governed by the same time limit is a point on which practitioners take different positions; confirm before relying on either view. Where credit has already lapsed, we do not recommend re-dating invoices or claiming the credit in a later year.
Frequently asked questions
What is the last date to claim ITC on FY 2025-26 invoices?
Under Section 16(4) of the CGST Act, ITC on invoices and debit notes pertaining to FY 2025-26 can be claimed only in a return furnished on or before 30 November 2026, or the date on which the annual return (GSTR-9) for FY 2025-26 is furnished, whichever is earlier. For a monthly filer, the GSTR-3B for October 2026 (normally due 20 November 2026) is the last regular return that falls inside the window.
Is the deadline the September return, as some websites say?
No. The September-return wording was the old rule. Since Finance Act 2022 (effective 1 October 2022), Section 16(4) refers to 30 November following the end of the financial year. If you see an aggregator quoting the September GSTR-3B for FY 2025-26, treat it as outdated and check the Act.
If I file GSTR-9 early, does my ITC window shrink?
Yes. Because the statute says whichever is earlier, furnishing GSTR-9 for FY 2025-26 before 30 November 2026 closes the window on the date of filing. Finish the ITC clean-up first and file the annual return afterwards.
Which financial year does an invoice belong to for this test?
The financial year to which the invoice pertains, which in practice follows the invoice date and not the date you received it or booked it. An invoice dated 28 March 2026 that reaches you in December 2026 still belongs to FY 2025-26 and is already out of time. Debit notes are tested by the date of the debit note.
What about QRMP filers?
A QRMP taxpayer files GSTR-3B quarterly. The July-September 2026 quarterly return (due 22 or 24 October 2026 depending on the state category) is the last scheduled return before 30 November. The October-December return falls due in January 2027, after the window closes. QRMP filers should therefore plan to capture FY 2025-26 credit in the July-September return, or in a late-filed return furnished on or before 30 November.
Does Section 16(5) help if I miss the FY 2025-26 date?
No. Sections 16(5) and 16(6), inserted by the Finance (No. 2) Act 2024, give relief only for invoices and debit notes of FY 2017-18 to FY 2020-21 where credit was availed in returns filed up to 30 November 2021. They do not extend the FY 2025-26 window.
Is missed ITC recoverable in any way?
Not under the GST law once the window closes; the credit lapses. Any recovery is contractual, for example where a supplier issued the invoice late in breach of the agreement. It is not a route to ask a supplier to re-date or re-issue an invoice, which creates its own compliance exposure.
We can review your FY 2025-26 purchase register, IMS status and Rule 37A position ahead of the cut-off.
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This article is for general information and does not constitute advice on any specific case. Rules, due dates and notifications change; confirm the current position before acting. Firm details: CA Somesh Chandak & Associates, Unit 119, 1st Floor, Centura Square IT Park, SG Barve Road, Wagle Estate, Thane West 400604. FRN 158694W.