Input tax credit under Section 16(5) overrides the Section 16(4) time limit for covered financial years and extended filings.

Section 16(5) of the CGST Act, 2017, as inserted by the Finance Act, 2024, contains a non-obstante clause overriding the time limit in Section 16(4) and permits input tax credit for invoices or debit notes relating to the specified financial years where the return under Section 39 was filed up to 30.11.2021. The claim in question related to those covered financial years and fell within the extended statutory window, so the text states that the petitioner was entitled to the benefit of Section 16(5), with the assessment and appellate orders rejecting credit set aside and the matter remanded for fresh assessment.

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Issues: Whether the petitioner was entitled to avail input tax credit in view of the insertion of sub-section (5) in Section 16 of the Central Goods and Services Tax Act, 2017, notwithstanding the time limit under sub-section (4).

Analysis: The amended provision inserted by the Finance Act, 2024 contains a non-obstante clause overriding sub-section (4) of Section 16 and permits input tax credit in respect of invoices or debit notes pertaining to the specified financial years where the return under Section 39 is filed up to 30.11.2021. The credit claimed by the petitioner related to the covered financial years and the claim was found to fall within the extended statutory window.

Conclusion: The petitioner was entitled to the benefit of Section 16(5) of the Central Goods and Services Tax Act, 2017, and the assessment order and appellate order rejecting the credit were set aside, with the matter remanded for fresh assessment.

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