The rule
Section 16(4) of the CGST Act says you cannot take input tax credit on an invoice or debit note after 30 November following the end of the financial year to which it relates, or after you file the annual return for that year, whichever is earlier. The 30 November date applies from 1 October 2022, when the Finance Act 2022 replaced the earlier deadline of the due date of the September return.
"Take" means claim in GSTR-3B. Credit claimed in a GSTR-3B filed after the deadline is not allowed, and if the supplier's invoice reaches GSTR-2B after the deadline, its ITC availability is marked "No".
Worked examples
| Invoice date | Financial year | Last date to claim |
|---|---|---|
| 15-04-2025 | 2025-26 | 30-11-2026 |
| 28-03-2026 | 2025-26 | 30-11-2026 |
| 02-04-2026 | 2026-27 | 30-11-2027 |
If you file the annual return (GSTR-9) for 2025-26 on 15 October 2026, the deadline for that year's credit moves forward to 15 October 2026.
Note the March invoice: it has only eight months, not twenty, which is why March purchases from slow-filing suppliers are where most credit is lost. Use the ITC deadline calculator to work out the date for any invoice.
Debit notes
Since 1 January 2021, the time limit for a debit note runs from the financial year of the debit note, not of the original invoice. A debit note dated May 2026 against a January 2026 invoice can be claimed until 30 November 2027.
Relief for 2017-18 to 2020-21 and revoked registrations
The Finance (No. 2) Act 2024 added two exceptions, with effect from 1 July 2017:
- Section 16(5): for invoices and debit notes of 2017-18, 2018-19, 2019-20 and 2020-21, credit taken in any GSTR-3B filed up to 30 November 2021 is allowed.
- Section 16(6): where a registration was cancelled and later revoked, credit for the period in between can be taken in a return filed within 30 days of the revocation order, provided the Section 16(4) time limit had not already passed when the registration was cancelled.
Both matter mainly for old notices and appeals. For current years, plan to the 30 November date.
How to protect credit before it lapses
- Reconcile every month, not only at year end, so suppliers have months to fix their returns.
- From August each year, list every open invoice of the previous financial year that is still missing in GSTR-2B, by supplier and value, and chase them first.
- Make sure credit that has reached GSTR-2B is actually claimed in GSTR-3B before 30 November. Credit that is available but unclaimed lapses just the same.
- Do not file GSTR-9 early if credit for that year is still pending; filing it brings the deadline forward.
Frequently asked questions
What is the last date to claim ITC for FY 2025-26?
30 November 2026, or the date you file the annual return for 2025-26 if that is earlier.
Does the Section 16(4) time limit apply to debit notes?
Yes, but it is counted from the financial year of the debit note's date, not the original invoice's, since 1 January 2021.
What happens if my supplier files GSTR-1 after 30 November?
The invoice appears in GSTR-2B with ITC availability marked No, and the credit cannot be claimed. Your remedy is commercial: recover the tax from the supplier.