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

Input tax credit refund available for unused ITC through RFD 01, subject to time limits, documentation, or alternative re invoicing.
If ITC was previously availed and remains in the electronic credit ledger without use for outward liability, a refund can be pursued by filing RFD 01 with required documents (export invoices, FIRC, ITC reconciliation with Form 2B, CA certificate where applicable); if the primary time limited refund route has lapsed, the alternate time barred IGST refund route may be used. ITC not claimed in GSTR 3B can only be claimed from the operative date (from April 2022), with earlier periods' ITC lapsing and requiring reversal to expense. Re invoicing with GST and utilising accumulated credit is a commercial alternative where refund is time barred.