IGST PAID ON IMPORTS -TIME LIMIT FOR AVAILING CREDIT

[X Y]

The taxpayer omitted to take credit of ITC on account of IGST paid on imports for the financial year 2018-19 in GSTR-3B returns of Financial year. The GSTR-3B for Sept 2019 has already been filed. Now what is the alternative available to the taxpayer. The time limit as mentioned under section 16(4) and Rule 36- Documentary requirements and conditions for claiming input tax credit are with respect to invoice or debit note and is silent on import documents. Please give the opinion.

[Venkataprasad Pasupuleti]

It can be said that time limit u/s. 16(4) is not applicable to the igst paid on imports as bill of entry is not a invoice under sec 31.

[KASTURI SETHI]

Time limit mentioned under Section 16(4) of CGST Act is also applicable to credit of Integrated Tax. As per Section 20 of IGST Act, the provisions of CGST Act and Rules made thereunder, inter alia, relating to ITC shall, mutatis mutandis apply to IGST Act.

Rule 36 (1) (d) clearly mentions as under :

(d) a bill of entry or any similar document prescribed under the Customs Act, 1962 or rules made thereunder for the assessment of integrated tax on imports;

[Alkesh Jani]

Shri

The issue is debatable, the Bill of Entry cannot be considered as Invoice under Section 31, the Rule 36 is with regards to documentary evidence for availing ITC, the debatable question is can we consider the Invoice issued by the foreign supplier as Invoice issued under Section 31? On the other end Section 16(4) mentions as “any Invoice” therefore, Invoice issued by the foreign supplier, based on which customs duty is assessed, can also be considered as “any Invoice” and date of such invoice can be taken as reference date for availing ITC.

Thanks

[KASTURI SETHI]

The matter will travel to High Courts or Supreme Court. To cap it all, notwithstanding the jugglery of words, the tax payers must not suffer due to late filing of monthly return.

[Alkesh Jani]

"Interpretation must depend on the text and the context. They are the bases of interpretation. One may well say if the text is the texture, context is what gives the colour. Neither can be ignored. Both are important. That interpretation is best which makes the textual interpretation match the contextual. A statute is best interpreted when we know why it was enacted. With this knowledge, the statute must be read, first as a whole and then section by section, clause by clause, phrase by phrase and word by word....."

[(1987) 1 SCC 424] = 1987 (1) TMI 452 - SUPREME COURT

[YAGAY and SUN]

We endorse the views of Mr. Alkesh Jani though matter is highly debatable and needs clarification from GST Council.

[Vishal Garge]

Needs clarification from GST Council.

AI Summary

Input tax credit time limit: dispute over applicability to IGST on imports and relevant documentary proof.
The applicability of the statutory time limit for claiming input tax credit to IGST paid on imports is disputed: one position distinguishes a bill of entry from an invoice and contends the invoice linked deadline does not apply to import IGST, whereas another treats the foreign supplier's invoice or the invoice underlying customs assessment as the relevant "any invoice" reference date. The core issue concerns documentary proof and the reference date for eligibility to claim credit, creating procedural risk for late returns.