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.

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.