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

GST input tax credit eligibility extended, enabling previously ineligible credits to be claimed where returns were filed timely. The issue is whether ITC disallowed for delayed appeal under section 16(4) becomes eligible under section 16(5); the respondent advises that where the relevant return was filed by the stipulated deadline, a Kerala High Court judgment supports claiming ITC under the extended period, making timely return filing the operative condition to benefit from the extension.