Clarification on time limit under Section 16(4) of TNGST Act, 2017 in respect of RCM supplies received from unregistered persons

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ndia, Ministry of Finance, Department of Revenue, CBIC, GST Policy Wing. ****** In the reference cited, the Government of India, Ministry of Finance, Department of Revenue CBIC, GST Policy Wing, has issued Circular No 211/5/2024-GST, dated 26.06.2024 based on the recommendations of the GST Council. Hence, following pari-materia circular is issued. Representations have been received by the GST Council, from trade and industry seeking clarity on the applicability of time limit specified under section 16(4) of Tamilnadu Goods & Services Tax Act, 2017 (hereinafter referred to as the "TNGST Act") for the purpose of availment of input tax credit (ITC) by the recipient on the tax paid by him under reverse charge mechanism (RCM) in respect....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... paid by the recipient on RCM basis, is to be issued by the recipient as per section 31(3)(f) of TNGST Act, the relevant year of invoice for the purpose of section 16(4) of TNGST Act is the financial year in which such invoice has been issued and accordingly, ITC should be available on the said invoice under section 16(4) of TNGST Act till the September/ November of the financial year following the financial year in which such invoice has been issued. Request has been made to issue clarification in the matter to avoid litigation. 2. The matter has been examined. In order to ensure uniformity in the implementation of the provisions of the law across the field formations, the Commissioner, in exercise of powers conferred under section 168 ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....and is reproduced below- "A registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after the thirtieth day of November following the end of financial year to which such invoice or debit note pertains or furnishing of the relevant annual return, whichever is earlier." Section 16(4) of TNGST Act, before the said amendment vide the Finance Act, 2022, provided as follows: "A registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after the due date of furnishing of the return under section 39 for the month of September following the end of fi....