Last Date to Claim ITC for FY 2025-26 Is 30 November 2026: Section 16(4) Deadline Explained

Two sections, two very different deadlines

The most common mistake in ITC planning this month is mixing up Sections 16(4) and 16(5). They sound similar; they do opposite jobs:

If your business has any FY 2025-26 purchase invoices that never made it into your GSTR-3B — a supplier who filed late, a missed entry, an invoice found during year-end review — November 2026 is your last chance. After 30 November, that credit is gone.

What the High Courts just said about Section 16(5)

Section 16(5) was Parliament’s fix for the early GST years: because the 16(4) time bar had bitten hard in FY 2017-18 to 2020-21 (when the portal and the law were both new), the 2024 amendment retrospectively allowed ITC for those years to be claimed in any Section 39 return filed up to 30 November 2021 — “notwithstanding” the 16(4) restriction. Tax authorities kept denying such claims anyway, and courts keep striking those denials down. Two fresh rulings this month:

• Karnataka High Court — Shivneel Gas Sales vs Assistant Commissioner of Commercial Taxes (Audit) (October 2026). The taxpayer’s returns for July 2017–March 2018 were filed late (April–August 2019), and a Section 73 adjudication order of 1 December 2023 had denied the ITC as time-barred. The Court noted that Section 16(5) — which did not exist when the order was passed — permits ITC for FYs 2017-18 to 2020-21 through returns filed up to 30 November 2021. Since the tax period fell squarely in the covered years and the returns were filed before the cut-off, the Court quashed the adjudication order and restored the matter for a fresh order recognising the ITC entitlement.
• Kerala High Court (October 2026). Held that ITC cannot be denied under Section 16(4) where the returns satisfy the Section 16(5) conditions — the retrospective amendment removes the original basis for the denial.

These join a consistent line: the Karnataka High Court’s earlier ABE Security Mechanics ruling (₹5.09 lakh ITC, returns before 30 November 2021, denial set aside) and a GSTAT ruling holding that even annual-return errors can’t defeat credit protected by the retrospective Section 16(5).

The takeaway for you: 16(5) is settled law for old-year disputes — if you are fighting a 2017–21 ITC denial, cite it. But it gives you zero extra time for FY 2025-26. That clock is Section 16(4), and it stops on 30 November 2026.

The 30 November 2026 checklist

1. Reconcile GSTR-2B against your purchase register

Download GSTR-2B for every month of FY 2025-26 and match it invoice-by-invoice with your books. Every gap — an invoice in your books but missing from 2B, or in 2B but never claimed in 3B — is a candidate for November action. Remember your suppliers’ GSTR-1 for October is due 11 November: chase them to file on time, because invoices they report late may miss your 2B window.

2. Claim missed eligible credit in a November GSTR-3B

Missed ITC is claimed through the regular GSTR-3B (Table 4), not a special form. File the October 3B (due 20 November) — or an earlier-period correction within the November filings — with the missed credit included. Keep invoice-level workings; if the department queries it later, the reconciliation is your evidence.

3. Clear the reversals first

Before you claim, reverse what isn’t eligible: blocked credits (motor vehicles, food and beverages, personal use — see our GST Hub guide on Section 17(5) blocked credits), credit on exempt-supply inputs under Rule 42/43, and any ITC where payment to the supplier is still pending beyond 180 days. Claiming ineligible credit to “use up” the deadline creates a bigger problem than it solves.

4. Don’t file GSTR-9 early

The 16(4) cut-off is the earlier of 30 November 2026 and your GSTR-9 filing date. Filing the annual return in early November would pull the deadline forward. Finalise your ITC position first, then file GSTR-9.

5. Watch reverse charge

RCM liabilities you paid late still generate ITC in the month of payment — but the underlying invoice still has to be within the 16(4) window. New RCM e-invoicing facilities (RCMDOM/RCMIMP) are now in sandbox; make sure self-invoices are generated so the credit trail is clean.

What happens if you miss 30 November?

The credit lapses — it cannot be carried forward, claimed in a later 3B, or recovered through the annual return. In practice, businesses that miss the cut-off either absorb the cost (it becomes part of the purchase cost, hitting margins) or face a losing litigation. The one narrow exception is where the credit was denied for old years covered by Section 16(5) — but that is a courtroom remedy for FY 2017-18 to 2020-21, not a planning tool for FY 2025-26.

For the full month-by-month picture, see our FY 2026-27 due-dates calendar and the Compliance Calendar Hub, and work through the returns methodically with our GSTR-3B filing guide.

Frequently Asked Questions

What is the last date to claim ITC for FY 2025-26?
30 November 2026, or the date you file GSTR-9 (annual return) for FY 2025-26 — whichever is earlier — under Section 16(4) of the CGST Act. Credit not claimed by then lapses permanently.

Does Section 16(5) give me more time for FY 2025-26 ITC?
No. Section 16(5) applies only to FY 2017-18 to 2020-21 (returns filed by 30 November 2021). It is retrospective relief for old disputes, confirmed again by the Karnataka and Kerala High Courts in October 2026 — not an extension for current-year credit.

How do I claim ITC I missed earlier in the year?
Include it in Table 4 of a GSTR-3B filed before the cut-off (e.g. the October 3B due 20 November 2026). Keep invoice-level reconciliation workings as evidence.

My supplier hasn’t filed GSTR-1, so the invoice isn’t in my GSTR-2B. Can I still claim ITC?
You can claim it in your 3B, but the credit is at risk if the supplier never reports the invoice — follow up and get them to file their GSTR-1 (October’s is due 11 November 2026) so the invoice flows into your 2B.

Should I file my GSTR-9 annual return before 30 November?
Only after your ITC position is final. Filing GSTR-9 early pulls the Section 16(4) cut-off forward to the filing date, closing the window for any further FY 2025-26 ITC claims.