TaxTMI 
TaxTMI 
2025 (6) TMI 919
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.... 18/08/2022 Invoice Value USD 49000 Seller name China Forbona Group Limited Invoice Number P220621518YD Port Code INBOM4 BE No 2134376 BE Date 24/08/2022 IGST Paid Rs. 9,00,939 • This IGST paid through Bill of Entry is reflected in GSTR-2A of August 2022 and reflected in GSTR-2B of March 2023. • This IGST credit is not availed in GSTR-3B of FY 2022-23 • The applicant is forgotten to avail this credit in GSTR-3B return till 30th November 2023 also. • On 21/03/2024, an email received from GST department regarding excess IGST ITC available as per GSTR-2B but not claimed in GSTR-3B, so need to avail & reverse the same in upcoming GSTR-3B return. • Then applicant remember about this left out IGST ITC to avail & accordingly the Applicant seeks clarification in AAR on the availability of this ITC. Following documents Attached for your reference:- • Commercial Invoice • E-Way Bill • Bill of Entry and its summary • GSTR-2A-August 2022 • GSTR-2B-March 2023 • Email from GST Department The applicant has so....
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.... mention "such other tax paying documents as may be prescribed" and by the time he reaches the end of section he left out the very same words i.e. "such other tax paying documents as may be prescribed". 2.5 Under the CGST Act, 2017 the ITC of Tax paid on import of goods i.e. IGST is allowed and in that regard we can refer to the Section 2 (62) (a) of CGST Act, 2017 which reads as "input tax" in relation to a registered person, means the central tax, State tax, integrated tax or Union territory tax charged on any supply of goods or services or both made to him and includes ... (a) the integrated goods and services tax charged on import of goods; and in order to allow such ITC under the CGST Act, 2017 the Section 16 (2) (a) specifically make mention of the words "such other tax paying documents as may be prescribed" and accordingly spelt out at Rule 36 (1) (d) of CGST Rules, 2017 the Bill of Entry or any similar documents as prescribe under the Customs Act, 1962 as one the documents eligible for availing the ITC. 2.6 Now let's go to the Section 20 (iv) of IGST Act, 2017 which provides that Subject to the provisions of IGST Act, 2017 and the rules made thereunder, t....
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....ct, 1975 which reads as under; Section 3 (7) Any article which is imported into India shall, in addition, be liable to integrated tax at such rate, not exceeding forty per cent. As is leviable under section 5 of the Integrated Goods and Services Tax Act, 2017 on a like article on its supply in India, on the value of the imported article as determined under sub-section (8)." 2.9 If we would compare the same with Section 3 (1) of Custom Tariff Act, 1975 which reads as under; "Section 3 (1) Any article which is imported into India shall, in addition, be liable to a duty (hereafter in this section referred to as the additional duty) equal to the excise duty for the time being leviable on a like article if produced or manufactured in India and if such excise duty on a like article is leviable at any percentage of its value, the additional duty to which the imported article shall be so liable shall be calculated at that percentage of the value of the imported article:" 2.10 Then we would appreciate the fact that the very difference in both above provisions are such that unlike Section 3 (1) the levy of IGST under Section 3 (7) is itself a levy and not any equivale....
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.... ITC. 3.6 The applicant has sought clarification regarding the applicability of time limit as mentioned in Section 16 (4) of CGST Act, 2017 on ITC eligible as per Bill of Entry and whether the applicant can avail this IGST credit in its upcoming GSTR-3B return. 3.7 Legal provisions The applicant has referred to Section 16, 16 (2) (a), 16 (4), 2 (38), 2 (66) and observed that at one place of the very same section (Section 16) legislature takes pain to mention " such other tax paying documents as may be prescribed" and by the end of the section they find that the legislature had left out the very same word i.e." such other tax paying documents as may be prescribed". 3.8 Further they have referred to Section 2 (62) (a) of CGST Act 2017 and agreed that in order to allow such ITC under CGST Act 2017, the Section 16 (2) (a) specifically mentions the word: Such other tax paying documents as may be prescribed" and accordingly spelt out at rule 36 (1) (d) of CGST Rules 2017 the Bill of Entry or any similar documents as prescribe under The Customs Act 1962 as one the documents eligible for availing the ITC. 3.9 They also made reference to Section 20 (iv) of IGST Act 2017 which....
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.... return till 30th November 2023 also. The Applicant seeks clarification on the availability of this ITC. 5.2 The applicant has mentioned that limitation of time for availing ITC as mentioned in section 16 (4) is applicable only to ITC as per any invoice or debit note. The ITC to be claimed in respect of IGST paid on imports is to be availed on the basis of Bill of Entry and provisions of section 16 (4) are not applicable for ITC availment in respect of Bill of Entry given the fact that Bill of Entry is one of the tax paying documents prescribed by section 16 (2) (a) read with Rule 36 (1) (d). Applicant contends that as limitation of time provided in section 16 (4) is not applicable to ITC to be claimed in respect of Bill of Entry, he can claim it now. 5.3 Section 16 of the CGST Act, 2017 spells out the eligibility and conditions for availing the input tax credit. Section 20 of IGST Act, 2017 provides for the applicability of various provisions of CGST Act, 2017 "mutatis mutandis" to the IGST Act, 2017 and by virtue of said section, the provisions related to Input Tax Credit as spelt out in the CGST Act are made applicable to IGST Act, 2017. 5.4 The time limit to avail the ....
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....ereon and such other particulars as may be prescribed. These other particulars are prescribed in Rule 46. Relevant part of the said Rule is reproduced as under. Rule 46. Tax invoice .- Subject to rule 54, a tax invoice referred to in section 31 shall be issued by the registered person containing the following particulars, namely,- (a) name, address and Goods and Services Tax Identification Number of the supplier; (b) a consecutive serial number not exceeding sixteen characters, in one or multiple series, containing alphabets or numerals or special characters-hyphen or dash and slash symbolised as "-" and "/" respectively, and any combination thereof, unique for a financial year; (c) date of its issue; (d) name, address and Goods and Services Tax Identification Number or Unique Identity Number, if registered, of the recipient; (e) name and address of the recipient and the address of delivery, along with the name of the State and its code, if such recipient is un-registered and where the value of the taxable supply is fifty thousand rupees or more; (f) name and address of the recipient and the address of delivery....
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....ugh our aggregate turnover in any preceding financial year from 2017-18 onwards is more than the aggregate turnover notified under sub-rule (4) of rule 48, we are not required to prepare an invoice in terms of the provisions of the said sub-rule." (ii) Thus, the suppliers of goods are required to issue the tax-invoice. Import of goods or services falls under the category of inter-state supply. The relevant provisions of inter-state supply under IGST Act are as below. 7. Inter-state Supply (2) Supply of goods imported into the territory of India, till they cross the customs frontiers of India, shall be treated to be a supply of goods in the course of inter-State trade or commerce. (4) Supply of services imported into the territory of India shall be treated to be a supply of services in the course of inter-State trade or commerce. (iii) These provisions provide that supply of goods imported into the territory of India till they cross the customs frontier of India shall is treated as supply of goods in the course of interstate trade. So, this interstate supply at the hands of importer is liable for IGST on the value of goods imported, as it is an inter....
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....oice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed; (aa) the details of the invoice or debit note referred to in clause (a) has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37; (b) he has received the goods or services or both. Explanation.- For the purposes of this clause, it shall be deemed that the registered person has received the goods or, as the case may be, services- (i) where the goods are delivered by the supplier to a recipient or any other person on the direction of such registered person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise; (ii) where the services are provided by the supplier to any person on the direction of and on account of such registered person; (ba) the details of input tax credit in respect of the said supply communicated to such registered person under section 38 has not been restri....
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....or furnishing the details under sub-section (1) of said section for the month of March, 2019. Section 16 (2) (a) (1) provides that the taxpayer is entitled to take ITC on tax invoice or debit note or such other tax paying documents as may be prescribed. Rule 36 (1) prescribes the documents for claiming Input Tax credit. It is mentioned at (d) that Bill of Entry or any similar documents prescribed under the Customs Act 1962, is one such document. Sub Rule (1) & (2) of Rule 36 are reproduced as under: - Rule 36: Documentary requirements and conditions for claiming input tax credit (1) The input tax credit shall be availed by a registered person, including the Input Service Distributor, on the basis of any of the following documents, namely,- (a) an invoice issued by the supplier of goods or services or both in accordance with the provisions of section 31; (b) an invoice issued in accordance with the provisions of clause (f) of sub-section (3) of section 31, subject to the payment of tax; (c) a debit note issued by a supplier in accordance with the provisions of section 34; (d) a bill of entry or any similar document prescrib....