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

Input Tax Credit on imports may be defendable despite time limits, while delayed domestic credits face slim prospects.
For missed ITC in FY 2017-18, imported goods supported by a bill of entry and an entry in table 4A.1 of Form GSTR 3B may be defended as not barred by the time limit, whereas delayed claims for domestic procurements such as packing materials face strong statutory time bar hurdles and have a remote chance of success on appeal.