Claim against short paid IGST paid through manual challan.

[Vishal Garge]

I had cleared the goods in FY 17-18 by paying all custom duties under GST. However during FY 19-20 , I had received notice from custom regarding short paid IGST on import of goods which was cleared in 17-18.

I accept the notice and discharged short paid liability of IGST alongwith Interest @15% through handwritten manual challan copy and ITC claimed voluntarily on the same in Import of Goods in GSTR-3B 19-20.

Whether any issue be faced in future on ITC taken on challan in 19-20 for import of goods pertaining to 17-18?

[KASTURI SETHI]

ITC cannot be denied on manual TR-6 challan. However, You may face time bar issue.

[Ganeshan Kalyani]

Basis of taking credit on import is BOE. So, if you claim ITC on manual challan then the original import BOE may be referred. Said BOE is of 2017-18 and hence when you claim ITC in 19-20 then there is a chance of getting notice from dept. for time bar credit claim. I agree with the veiws of Sri Kasturi Sir.

[KASTURI SETHI]

Tax /duty paid challan whether through online or manual TR-6 challan becomes an integral part of Bill of Entry. Well elaborated by Sh.Ganeshan Kalyani, Sir.

[Vishal Garge]

Dear Sir , Thanks for your comments on the subject.

Regarding time bar claim , I checked CGST section 16 (4) , it's covering Invoice and debit note subject to details available in filled return. However it is not covered "Bill of entry". What can be reason of Bill of entry excluding from this section.

[KASTURI SETHI]

Do you want to say that ITC on the strength of Bill of Entry is available for unlimited period ? Is bill of entry independent of invoice ? Is bill of entry independent of challan (proof of payment of IGST/Customs duty ? Time limitation is applicable.

[Amit Agrawal]

In my respectful submission, Section 16 (4) does not forbid you from availing ITC against challan towards differential IGST paid - in year 19-20 - for goods imported in July, 17 to March, 18.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion. And I respect contrary views.

[Shilpi Jain]

2 points here. The TR-6 challan is not a prescribed document under the law for claiming credit. Section 16 states "...or such other tax paying documents as may be prescribed" to be a document on which credit can be taken.

However, rule 36 in this regard states

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 import

TR6 whether will fall under this is the question.

However, in spite of this a view can be taken that once tax is accepted by the department, ITC cannot be denied.

[KASTURI SETHI]

In this scenario, if ITC is taken be prepared to face litigation.

[Shilpi Jain]

So credit on the strength of TR-6 should be allowed.

Next point is there is no time limit mentioned for availing credit through BoE. Time limit in the law is only w.r.t. credit of invoice and debit note. So the credit of tax paid now can be availed.

To note that availing credit under this law is linked to the document date on which credit is availed and not to the time when the supply is made.

[KASTURI SETHI]

Date of bill of entry, date of TR.6 Challan and date of invoice are integrated for all purposes. On the time-bar issue, the department has so many legal arrows in its legal armoury.

[Amit Agrawal]

Dispute related to time-limitation in availing ITC, in given situation, are worth fighting for and can be judicially defended (i.e. if Dept. insists on litigation) in my view.

Of-course, one should to be ready to go through rigors of litigation (as being always the case of facing any litigation).

These are ex facie views of mine and the same should not be construed as professional advice / suggestion. And I respect contrary views.

[Vishal Garge]

Dear Sir /Madam,

Following is the link of appeal seems similar to subject.

https://cgstrajkotappeals.gov.in/wp-content/uploads/2022/03/RAJ-EXCUS-000-APP-032-TO-033-2021-GST-JC.pdf

[Amit Agrawal]

Thank you for sharing the order via link - cgstrajkotappeals.gov.in/wp-content/uploads/2022/03/RAJ-EXCUS-000-APP-032-TO-033-2021-GST-JC.pdf , Shri Vishal Garge, which is directly on the subject under discussion here & in favor of the taxpayer / assessee.

[Navjot Singh]

If anyone have downloaded the Rajkot Appeal's Order, please mail it to me [email protected]

[VISHAL SHARMA]

Hello, if anyone have downloaded this appeal order, Can you please forward this appeal order to me as well on my mail id :

[email protected]

AI Summary

Input tax credit on delayed IGST payment may be allowed but faces time bar challenges and litigation risk.
Claiming input tax credit for IGST paid later via a manual challan hinges on whether a manual challan qualifies as a prescribed tax paying document equivalent to the Bill of Entry or invoice for import transactions, and on time bar implications when credit for earlier imports is taken in a subsequent return. While acceptance of tax payment by the department supports credit, taxpayers face risk of departmental notices and potential litigation when claiming such delayed ITC.