ITC pertaining to financial year 17 - 18

[Kaustubh Karandikar]

XYZ (Manufacturer) had missed out claiming of ITC on certain imported machinery as well as on certain locally procured packing materials received in the financial year 17 – 18. As per the provisions, the deadline for claiming ITC for financial year 17 – 18 was 31.03.19. If XYZ claims such ITC in the current month, it might be definitely objected during departmental audit. If XYZ decides to contest, what are the chances of getting a favourable decision at CESTAT level or at High Court since the ITC involved is very large.

[Venkataprasad Pasupuleti]

ITC on imported goods - fair chance as interpretation is possible to say sec 16(4) is not applicable.

For doemstic procurements - case is weak as no strong grounds are there

[Mr Rao]

Dear sir,

I agree with shri CA Venkata Prasad's clarification. The provisions are very clear that no restriction on availment of ITC in respect of IGST paid on import of goods by such registered persons ( where the credit has been availed on the strength of bill of entry by making an entry in table 4A.1 in Form GSTR-3B). With regard to availment of credit on domestic goods beyond the stipulated period, there is a very remote chance of getting favourable orders from CESTAT or High Court.

AI Summary

XYZ Faces Hurdles in Claiming ITC on Imports and Domestic Goods from 2017-18; Section 16(4) May Offer Relief XYZ, a manufacturer, missed claiming Input Tax Credit (ITC) on imported machinery and locally procured packing materials for the financial year 2017-18. The deadline for claiming ITC was March 31, 2019. If XYZ claims ITC now, it may face objections during audits. CA Venkata Prasad suggests a fair chance of success for imported goods due to possible interpretation of Section 16(4), but a weak case for domestic procurements due to lack of strong grounds. GB Rao concurs, noting no restrictions on IGST credit for imports, but limited chances for domestic credit claims beyond the deadline.