Section 16(4) & (5) Issue

[Aniket Mali]

Dear experts,

for the FY 2018-19 we have filed appeal for 16(4) ineligible ITC and appeal has been rejected due to delay in filing of appeal, now the period extended as per section 16(5) and hence our ITC becomes eligible now.

My query is how can we take benefit of section 16(5).

[KASTURI SETHI]

If you have filed the relevant return for the year 18-19 by 30.11.21, the following judgement of Kerala High Court will be helpful to you :-

2024 (12) TMI 1507 - KERALA HIGH COURT - SUNDARESHA PAI P.N., VERSUS THE ASSISTANT STATE TAX OFFICER ERNAKULAM, THE COMMISSIONER OF STATE TAX THIRUVANANTHAPURAM, CENTRAL BOARD OF INDIRECT TAXES & CUSTOMS NEW DELHI, STATE OF KERALA THIRUVANANTHAPURAM

AI Summary

Eligibility of Input Tax Credit Under GST Section 16(5) Reconsidered After Late Filing Rejection for FY 2018-19 A user inquired about the eligibility of input tax credit (ITC) under Section 16(5) of the GST Act after an appeal for FY 2018-19 was rejected due to late filing. An expert responded, referencing a Kerala High Court judgment that could assist if the relevant return was filed by November 30, 2021. The court had set aside a previous order denying ITC based on Section 16(4) and directed authorities to reconsider the case under Section 16(5), allowing the petitioner a hearing within three months.