Section 16(4) — ITC time limit
Section 16(4) of the CGST Act bars ITC for an invoice claimed after 30 November of the year following the financial year, or the date of filing the annual return, whichever is earlier.
Section 16(4) is the ITC expiry rule. Credit for any invoice of a financial year must be claimed by 30 November of the next year (or the annual-return date, if earlier). Miss it and the credit lapses permanently — there is no re-availment. This makes the reconciliation calendar a hard deadline, not a target.
Every unclaimed credit has a shelf life. Section 16(4) draws a firm line: for FY 2025-26 invoices, the last chance to claim is the GSTR-3B for October 2026, filed by 30 November 2026. Credit not taken by then is gone for good — unlike Rule 37 reversals, there is no mechanism to bring it back later.
This deadline coincides with the Rule 37A reversal date, which makes November a critical month: you must both claim every credit you are owed and reverse every credit at risk. Missing 2B invoices, vendor follow-ups and blocked credits under Section 17(5) all need to be resolved before the window shuts. Amendments to earlier invoices and debit notes are caught by the same outer date, so late supplier corrections must be tracked against this ceiling too.
The Recoup angle: Recoup surfaces every unclaimed eligible credit ahead of the 30 November cut-off so none quietly expires.