Input Tax Credit time bar extension via retrospective amendment permits delayed claims filed within the extended window; factual eligibility remains for authority review.

The text examines the retrospective insertion of Section 16(5) which, as a non obstante provision, overrides the time restriction in Section 16(4) to permit claiming input tax credit for specified financial years up to 30.11.2021; it notes related administrative instruments clarifying implementation. The discussion focuses on legal permissibility of belated ITC claims where returns were filed within the extended window and distinguishes legal entitlement questions from factual eligibility, which is to be examined by the tax authority.

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Issues: Whether input tax credit (ITC) claimed by the petitioner for the financial year 2018-19, though belated, is permissible in view of the retrospective insertion of Section 16(5) of the Central Goods and Services Tax Act, 2017 which extends the time limit for availing ITC up to 30.11.2021 for specified financial years.

Analysis: The Court examined Section 16(4) and the subsequently inserted Section 16(5) of the Central Goods and Services Tax Act, 2017. Section 16(5) was inserted by Section 118 of the Finance (No. 2) Act, 2024 with retrospective effect from 01.07.2017 and operates as a non-obstante clause overriding the time restriction in Section 16(4) for invoices pertaining to financial years 2017-18, 2018-19, 2019-20 and 2020-21. The Court also noted the administrative clarifications including Notification No. 17/2024-Central Tax dated 27.09.2024 and Circular No. 237/31/2024-GST dated 15.10.2024 which explain implementation of subsection (5). The petitioner's GSTR-3B for March-2019 was filed on 28.10.2019, which falls within the extended period allowed under Section 16(5) (i.e., up to 30.11.2021). The Court limited its review to the legal permissibility of claiming ITC under the extended time and did not adjudicate factual eligibility; factual aspects were remitted to the authority for examination.

Conclusion: The petitioner is entitled to claim ITC for the invoice pertaining to financial year 2018-19 as the return was filed within the extended period permitted by Section 16(5) of the Central Goods and Services Tax Act, 2017; the Orders denying the ITC are set aside and the matter is remitted to the assessing authority for factual determination of eligibility in accordance with the law.

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