TMI Blog2022 (2) TMI 652X X X X Extracts X X X X X X X X Extracts X X X X ..... oice (which is leading to mis-interpretation of the period of Invoice), the same is pertaining to the period of supply covered by the said invoice i.e. 2018-19. In the instant case, as the invoice pertains to the financial year 2018-19, vide Section 16 (4), the recipient is entitled to take ITC on an the same before furnishing of Return under Section 39 for the month of September, 2019 following the end of financial year 2018-19 to which such invoice pertains or furnishing of the relevant annual return for the year 2018-19, whichever is earlier - Even the proviso to section 16 (4) reiterates that the registered person is entitled to take ITC in respect of any invoice or invoice relating to such debit note for supply of goods or services or both made during the financial year 2017-18. This proviso absolutely necessitates or rather endorses the invoices relating to supplies made during the financial year 2017-18 only, for the registered dealer to claim entitlement of ITC in the succeeding financial year. The appellant is not eligible to claim Input Tax Credit on the disputed invoice dated 01.04.2020 that was issued covering the supply of services pertaining to the period from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eturn for 20-21 in terms of Sec 16 (4). The Authority for Advance Ruling Andhra Pradesh in its orders in AAR no.21 /AP/GST/ 2021 Dt.20.07.2021 ruled as under: Question 1: Whether 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. Answer : The invoice referred pertains to the services rendered in the financial year 2018-2019 and hence it is 'hit by the limitation for claiming ITC under Section 16 (4). Question 2 : If the applicant avails ITC on such invoice after 01.04.2020 and before filing GST return for September 2021/Annual Return for 2020-2021, whether it amounts to violation of condition stipulated under sub- section(4). Answer : Affirmative. Aggrieved by the above ruling, the appellant has filed the present appeal on the following grounds. 2. Grounds of Appeal: The appellant states that the ruling of AAR is not legal and proper and it is based on the erroneous interpretation of the provisions of Sec 16 (4) of the CGST/APGST Act, 2017. The detailed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 21 and accordingly, the registered person can avail ITC on the same till due date of furnishing of FORM GSTR-3B for the month of September, 2021 or furnishing of the annual return for FY 2020-21, whichever is earlier. From the above illustration, the following emerges: Supply made in FY 2019-20 Debit note issued in FY 2020-21 Credit can be claimed in FY 2021-22 (by September 2021) Thus, it is clear that for the supplies made in the Financial Year 2019-20, credit can be availed by due date of furnishing the GSTR 3B for the month of September 2021. In other words, the phrase following the end of financial year to which such invoice or debit note pertains used in Sec 16 (4) qualify only the documents issued in a financial year, rather than supplies made in a financial year. 2.4 Hence, in the instant case, the supply of service was in the year 2018-19, invoice was issued in the year 2020-21 and the last date for claiming credit would be the due date of filing GSTR 3B for the month of September 2021. 2.5 Hence, the appellant claims that the interpretation of the provisions of Section 16 (4) by the LD. AAR is not correct and requests this authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h is leading to mis-interpretation of the period of Invoice), the same is pertaining to the period of supply covered by the said invoice i.e. 2018-19. 4.5 While defending the case, in Para 2.1, the appellant claims that 'delayed issuance of invoice' cannot be a ground to deny the credit to the buyer. But it is definitely a ground to claim input tax credit only on the 'documents' that are validated by the Act and in the 'conditions' prescribed by the Act. In para 2.2, the appellant draws an analogy with reference to 'debit note', whereas the current issue pertains to 'invoice', which is out of context. Similarly even in para no 3, the referenced Circular also pertains to the issue of Debit note, which is rather irrelevant to the issue at hand. 4.6 As far as eligibility for availing of ITC is concerned, as per Section 16 (4) of CGST Act, 2017, which reads as under; (4) 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 financia ..... X X X X Extracts X X X X X X X X Extracts X X X X
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