TaxTMI 
TaxTMI 
2022 (2) TMI 652
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.... a reference to the same provisions under the APGST Act. The present appeal has been filed under Section 100 of the Central Goods and Services Tax Act, 2017 and the Andhra Pradesh Goods and Services Tax Act, 2017 [hereinafter referred to as "the CGST Act and APGST Act"] by M/s. Vishnu Chemicals Ltd (herein after referred to as the "Appellant") against the Advance Ruling No. AAR No.21/AP/GST/2021 dated 20.07.2021 issued by Authority for Advance Ruling, Andhra Pradesh. 1. Background of the Case: 1.1 The appellant, M/s. Vishnu Chemicals Limited is engaged in manufacture of Basic Chromium Sulphate, Sodium Sulphate and Chromic Acid falling under HSN 28332990, 28331100 and 28191000. For the purpose of storing the raw material as well as finish....
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....ear 2018-2019 and hence it is 'hit by the limitation for claiming ITC under Section 16 (4). Question 2 : If the applicant avails ITC on such invoice after 01.04.2020 and before filing GST return for September 2021/Annual Return for 2020-2021, whether it amounts to violation of condition stipulated under sub- section(4). Answer : Affirmative. Aggrieved by the above ruling, the appellant has filed the present appeal on the following grounds. 2. Grounds of Appeal: The appellant states that the ruling of AAR is not legal and proper and it is based on the erroneous interpretation of the provisions of Sec 16 (4) of the CGST/APGST Act, 2017. The detailed grounds are as follows: 2.1 The AAR had held in its ruling as under: "The provis....
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....l year. For example, if supplies are made in FY 2018-19 and due to price escalation, if a debit note is issued in the month of October 2019, for supplies made in FY 18-19, then limitation under Sec 16 (4) in respect of such debit note for claiming ITC would be Sept 2020, but not Sept 2019 (based on original supply date). 2.3 The appellant further submits that CBIC has issued a clarification on 20.09.2021 on interpretation of the provisions of Sec 16 (4) vide Circular No.160/16/2021-GST, with the following illustration: "Illustration 2. A debit note has been issued on 10.11.2020 in respect of an invoice dated 15.07.2019. As per amended provision of section 16 (4), the relevant financial year for availment of input tax credit on the said ....
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....bmissions already made. 4 Discussion and Findings: 4.1 We have gone through the facts of the case and entire submissions made by the appellant and the Ruling pronounced by the Authority for Advance Ruling as well. In light of the diametrically opposite interpretations made by both the appellant and the lower authority, we discuss the eligibility of the invoice dated 01.04.2020 for calming input tax credit, if claimed before filing GST return for September 2021 or Annual return for 20-21 in terms of Sec 16 (4). 4.2 The main subject of contention is the issuance of a tax invoice dated 1.04.2020 for monthly rental services extended from April 2018 to March 2019 and its eligibility thereon to claim input tax credit under Sec.16(4). 4.3 The ....
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.... 2018-19. 4.5 While defending the case, in Para 2.1, the appellant claims that 'delayed issuance of invoice' cannot be a ground to deny the credit to the buyer. But it is definitely a ground to claim input tax credit only on the 'documents' that are validated by the Act and in the 'conditions' prescribed by the Act. In para 2.2, the appellant draws an analogy with reference to 'debit note', whereas the current issue pertains to 'invoice', which is out of context. Similarly even in para no 3, the referenced Circular also pertains to the issue of Debit note, which is rather irrelevant to the issue at hand. 4.6 As far as eligibility for availing of ITC is concerned, as per Section 16 (4) of CGST Act, 2....
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....gistered person is entitled to take ITC in respect of any invoice or invoice relating to such debit note for supply of goods or services or both made during the financial year 2017-18. This proviso absolutely necessitates or rather endorses the invoices relating to supplies made during the financial year 2017-18 only, for the registered dealer to claim entitlement of ITC in the succeeding financial year. 4.9 The availment of input tax credit is subject to satisfying certain conditions prescribed in the statute. It is supported time and again, even by the Courts of Law in various issues. For instance, In Jayam and Company versus Assistant Commissioner and Another, (2016) 15 SCC 125, the Hon'ble Supreme Court had held that, "11. From t....