GST: High Court Allowed ITC Claim Beyond Section 16(4) Timeline as per Finance Act 2024

The petitioner, Shri Maddirala Srinivasulu Reddy, was assessed to tax under the Central Goods and Services Act, Andhra Pradesh Goods and Services Act, 2005, and the Integrated Goods and Services Act, 2017, through the assessment order dated 28.08.2024. During which, the petitioner tried to claim Input Tax Credit (ITC) using his credit ledger.

However, when the petitioner sought to do this, the tax officer rejected his claim, saying he claimed the credit on 22.12.2020, which was two months later than the maximum period available under Section 16(4) of the CGST Act, namely 20.10.2020. Therefore, the petitioner filed an appeal before the High Court of Andhra Pradesh.

Petitioner’s Argument

The learned counsel of the petitioner referred to Section 16(5) of the CGST Act, which says that for invoices from FY 2017-18 to 2020-21, ITC can be claimed in any returns filed under section 39 up to 30.11.2021.

The petitioner submitted that he is entitled to claim the ITC, which was rejected by the tax officer as the petitioner claimed credit on 22.12.2020, which falls within the time period of 30.11.2021.

High Court Decision

The High Court of Andhra Pradesh observed that the ITC was claimed on 22.12.2020, which is within the time of 30.11.2021. Therefore, the High Court set aside the assessment order dated 28.08.2024.

The matter is remanded to the tax officer to pass a new order as per the provision of Section 16(5) of the CGST Act.