IGST credit paid on imported machinery via Bill of Entry was not claimed in time, and AAR ruled it cannot be availed after the Section 16(4) deadline.
Saloni Kumari | Jun 13, 2025 |
Due Date for Availing ITC As Per Section 16(4) Applicable on IGST Paid on Bill of Entry: AAR
M/s. Adi Enterprises is the legal name of the applicant here. The registered address of the business is 01, Desaiwadi, Usgaon, Bhatane, Virar, Palghar, Maharashtra, 401303. Applicant is a manufacturer of “Ear buds”, which have HSN as 96190090. They have imported machinery, the details of which are as under:
Under Section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017, the applicant, M/s. Adi Enterprises filed the application [hereinafter referred to as “the CGST Act and MGST Act” respectively], for an Advance Ruling on 19.04.2024, (State), seeking advance ruling on the availment of ITC of tax paid or deemed to have been paid.
The applicant imported goods and paid IGST (tax) via a Bill of Entry. This tax was accurately displayed in their GSTR 2A (in August 2022) and GSTR 2B (in March 2023), which are forms indicating what Input Tax Credit (ITC) is available.
Even though the tax was displayed as available, the applicant forgot to claim this ITC in its GSTR 3B return for the financial year 2022–23. Moreover, the applicant missed the final due date (30th November 2023) to claim ITC as per the GST law.
The GST department then sent an email to the applicant on March 21, 2024, saying that this IGST credit is displayed in GSTR 2B but has not been claimed yet in GSTR 3B. The department recommended the applicant claim it now and also reverse it in the same return (a process for unmatched ITC).
The applicant has now remembered its missed ITC and is now asking the Authority for Advance Ruling, and raising questions whether it’s still legally allowed to claim this old IGST credit in the upcoming GSTR 3B return, even though the deadline has ended under Section 16(4) of the CGST Act.
The applicant has raised the following questions by seeking the advisory ruling:
“1) Whether the time limit of availing ITC as mentioned in Section 16(4) of the CGST Act, 2017 is applicable on ITC eligible as per the Bill of Entry?
2) In this case, can the applicant avail of this IGST paid as per the bill of entry in the next GSTR3B?“
In accordance with the Maharashtra Authority for Advance Ruling (MAAR), the above questions are being answered as follows under Section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017:
Ans. 1: Yes, the time limit of availing ITC (Income Tax Credit) as stated in Section 16(4) of the CGST Act, 2017 is applicable on ITC eligible as per the Bill of Entry.
Ans. 2: No, in this case, the applicant cannot avail of this ICST paid as a bill of entry in the next CGSTR3B.
Refer to the advance ruling for complete information.
In case of any Doubt regarding Membership you can mail us at [email protected]
Join Studycafe's WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"
