Taxpayer cannot claim ITC for an invoice issued in FY 2020-21 for Services related to FY 2018-19

Andhra Pradesh Authority of Appellant Authority of Advance Ruling (AAAR) in the matter of Vishnu Chemicals Limited has ruled out that Taxpayer cannot claim Input Tax Credit (ITC) for an invoice issued in FY 2020-21 for Services related to FY 2018-19.

The tax invoice dated 01.04.2020 issued by the supplier of service for the rental service supplied for the period 01.04.2018 to 31.03.2019 is hit by the limitation for claiming ITC under Section 16(4) of the CGST/SGST Act, 2017. The appellant is not eligible to claim Input Tax Credit on the disputed Tax Invoice.

The Authority further ruled out that if the applicant avail ITC on such invoice after 01.04.2020 and before filing GST return for September 2021/Annual Return for 2020-2021, same amounts to a violation of condition stipulated under sub-section (4) of Section 16.

The appellant, Vishnu Chemicals Limited is engaged in the 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 finished goods, the applicant needed some additional storage space and therefore, entered into lease agreements with M/s. Usha Tubes and Pipes Pvt, Ltd. Visakhapatnam (GSTIN:37AAACU7175R1ZG) (referred to as “UTPL”) for leasing of godowns situated at UTPL Campus, N4indi, Gajuwaka, Visakhapatnam.

The Ruling was made by Sri Suresh Kishnani (Member) (Central Tax) and Sri S. Ravi Shankar Narayan (Member) (State Tax).

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