9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (7) TMI 1362 - AAR - GSTInput Tax Credit - applicability of Time Limitation or not - tax invoice dated 01.04.2020 issued by the supplier of service for the rental service supplied for the period 01.04.2018 to 31.03.2019 - sub-section (4) of Section 16 of the CGST/SGST Act, 2017 - HELD THAT - In the instant case the 'tax invoice' is issued by the lessor on 01.04.2020 for the services supplied in the financial year 2018-2019. For any transaction, the tax invoice is the primary document evidencing the supply and vital for availing input tax credit. In the instant case, the invoice which was raised on 01.04.2020 does not pertain to that financial year of 2020-2021, but pertains to the financial year of 2018-2019 in which the services were received. Moreover, as per section 16(4) the applicant was mandated to claim input tax credit before the due date of furnishing of the return under section 39 for the month of September 2019 following the end of financial year 2018-2019 to which such invoice pertains or furnishing of the relevant annual return for the year 2018-2019, whichever is earlier. In such a context, it is opined that the applicant is not entitled to take credit of input tax under section 16(4) as it does not fulfill the basic condition that the invoice should pertain to the financial year 2018-2019 where in the supplies are made and for which the tax invoices are supposed to be raised as prescribed by the act. Thus, Act necessitates the applicant to claim input tax credit as per the conditions prescribed under the act.
Issues involved:
1. Interpretation of Section 16(4) of the CGST/SGST Act, 2017 regarding input tax credit on a tax invoice dated 01.04.2020 for services provided in the financial year 2018-2019. 2. Determining if availing input tax credit after 01.04.2020 but before filing GST return for September 2021/Annual Return for 2020-2021 violates Section 16(4). Issue 1: Interpretation of Section 16(4) regarding input tax credit on a tax invoice for services provided in the financial year 2018-2019: The applicant sought a ruling on whether a tax invoice dated 01.04.2020 for rental services provided from 01.04.2018 to 31.03.2019 is eligible for input tax credit under Section 16(4). The applicant argued that the restriction under Section 16(4) is not applicable to the invoice dated 01.04.2020 as it pertains to services provided in the financial year 2018-2019. The Authority examined the provisions of Section 16(4) which prohibit input tax credit after the due date of filing returns for the relevant financial year. The Authority concluded that the applicant is not entitled to claim input tax credit on the invoice dated 01.04.2020 as it does not fulfill the requirement that the invoice should relate to the financial year in which the services were provided, as mandated by the Act. Issue 2: Determining if availing input tax credit after 01.04.2020 but before filing GST return for September 2021/Annual Return for 2020-2021 violates Section 16(4): The second question raised was whether availing input tax credit after 01.04.2020 but before filing GST return for September 2021/Annual Return for 2020-2021 would violate the conditions stipulated under Section 16(4). The Authority affirmed that availing input tax credit on the invoice dated 01.04.2020 after the specified date would indeed amount to a violation of the conditions laid down in Section 16(4). This decision was based on the fact that the invoice pertained to services rendered in the financial year 2018-2019 and did not meet the criteria for claiming input tax credit under the Act. This judgment by the Authority for Advance Ruling, Andhra Pradesh, clarified the application of Section 16(4) of the CGST/SGST Act, 2017 concerning input tax credit on invoices for services provided in specific financial years. The ruling emphasized the importance of adhering to the prescribed timelines and conditions for claiming input tax credit under the relevant provisions of the Act.
|
