GST: ITC not available for the past period invoices on account of time limitation

Sep 5, 2022 | Blog | 0 comments

ITC not available for the past period invoices on account of time limitation.

The Authority for Advance Ruling in the matter of M/S Vishnu Chemicals Limited AAR No. 21/AP/GST/2021, dated 20.07.2021 held that No, Input Tax Credit (ITC) on monthly renal tax invoice raised after the expiry of the period of limitation. 

Fact: M/s Vishnu Chemicals Limited was engaged in the manufacture of basic Chromium Sulphate, Sodium Sulphate and Chronic Acid. Applicant let out the additional storage space for the purpose of storing the raw material, therefore Applicant entered into the lease agreement with the M/S Usha Tubes Pvt Ltd.

The Applicant submitted that the from April 2018 to March 2019, M/S UTPL issued a single tax invoice showing rent month wise for 12 months.

The applicant approached the authority seeking a ruling whether the invoice dated 01.04.2020 is eligible for Input tax credit(ITC) claiming before filing GST return for September 2021 or Annual return for 20-21 in terms of Sec 16() under CGST Act, 2017.  

Issue before AAR:

  1. Whether the tax invoice dated April 1, 2020 issued by M/s UTPL for rental service for the year 2018-19 is hit by the limitation for claiming ITC under Section 16(4) of the CGST Act.
  2. Whether the tax invoice dated April 1, 2020 is eligible for ITC if claimed before filing GSTR 3B return for September 2021 or Annual return for the year 2020-21 in terms of Section 16(4) of the CGST Act.

Held: The Authority for Advance Ruling, Andhra Pradesh held that invoice referred pertains to the service rendered in financial year 2018 -2019 is hit by the limitation for claiming ITC under section 16(4) of the CGST Act, 2017 and the tax invoice has not been issued by the Applicant within thee a period of 30 days from the date of supply of services that’s why Applicant is not entitled to take ITC under section 16(4) of the CGST Act, 2017.

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