Claim Input Tax Credit

[Venkatraman Aiyar]

Dear All,

Request your inputs on the below query.

So we are an Indian Subsidiary of a Singapore Registered ITES Company. All our Expenses is charged to our Singapore Parent under our Transfer Pricing Agreement and the Invoices raised by us is with 0% Output GST. Every month we receive advance remittances from our Parent Company to meet the expenses, which is offset/reconciled against the Invoices submitted.

Up until now we have not claimed the ITC and the credit is lying in our e-duty ledger. My query is can I now claim the ITC for the previous financial years. For example in FY23 claim ITC for FY20. If yes, then please can you guide me on the process and compliances.

Thank you.

Ganesh Iyer

AI Summary

Indian Subsidiary Can Claim Past ITC Refunds with Form RFD-01 Under IGST Act; Two-Year Limit Applies An Indian subsidiary of a Singapore ITES company inquires about claiming Input Tax Credit (ITC) for previous financial years, as their GST output is nil due to transactions with their parent company. Despite having ITC lying in their e-duty ledger, they have not claimed refunds. Respondents clarify that ITC claimed in past years but not refunded can still be claimed following procedures under the IGST Act, 2017. Refunds can be claimed within two years of invoice date, using form RFD-01, with necessary documentation. If ITC was not claimed in GSTR-3B, it can be claimed from April 2022 onward.