TaxTMI 
TaxTMI 
Is section 16(2) of CGST act overriding section 16(4) of CGST act?
Section 16(2) vs 16(4)
30 Nov 2021 
24 Replies 
11419 Views Asked by
Input Tax Credit eligibility requires satisfying documentary conditions and statutory time limits before a claim is allowed.
The debate focuses on whether Section 16(2)'s non obstante clause and documentary eligibility conditions (possession of invoice, receipt of goods/services, tax paid, and return filed) displace or coexist with Section 16(4)'s temporal cut off for claiming input tax credit. Contributors generally conclude that Section 16(2) provides essential documentary prerequisities to avail ITC, while Section 16(4) operates as an independent time limit that must also be satisfied; failure to comply can trigger reversal, denial of credit, or departmental show cause action. (AI Summary)
The debate focuses on whether Section 16(2)'s non obstante clause and documentary eligibility conditions (possession of invoice, receipt of goods/services, tax paid, and return filed) displace or coexist with Section 16(4)'s temporal cut off for claiming input tax credit. Contributors generally conclude that Section 16(2) provides essential documentary prerequisities to avail ITC, while Section 16(4) operates as an independent time limit that must also be satisfied; failure to comply can trigger reversal, denial of credit, or departmental show cause action. (AI Summary)