Time limit for input tax credit clarified - invoice issuance year governs ITC availment for RCM from unregistered suppliers. Clarifies that for supplies from unregistered persons where tax is payable by the recipient under the reverse charge mechanism, the registered recipient must issue the invoice and pay tax; the relevant financial year for the time limit to avail input tax credit is the financial year in which that recipient-issued invoice is issued, subject to payment of tax and other statutory conditions. Delayed issuance after time of supply attracts interest and possible penal consequences.
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Provisions expressly mentioned in the judgment/order text.
Time limit for input tax credit clarified - invoice issuance year governs ITC availment for RCM from unregistered suppliers.
Clarifies that for supplies from unregistered persons where tax is payable by the recipient under the reverse charge mechanism, the registered recipient must issue the invoice and pay tax; the relevant financial year for the time limit to avail input tax credit is the financial year in which that recipient-issued invoice is issued, subject to payment of tax and other statutory conditions. Delayed issuance after time of supply attracts interest and possible penal consequences.
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