The Andhra Pradesh Authority for Advance Ruling (AAR) has held that no Input Tax Credit on Monthly rental invoices raised after the expiry of the period of limitation.
The applicant, M/s. Vishnu Chemicals Limitedis engaged in manufacturing Basic Chromium Sulphate, Sodium Sulphate, and Chromic Acid to store raw materials and finished goods.The applicant needed additional storage space and entered into lease agreements with M/s Usha Tubes and Pipes Pvt. Ltd.
The applicant submitted that monthly rental bills were received from M/s UTPL regularly till March 2018. But for the months from April 2018 to March 2019, M/s UTPL issued a single tax invoice mentioning in the description as Rental charges for the months from April 2018 to March 2019 by showing rent month-wise for 12 months. The invoice mentioned CGST as 26,64,090/- and SGST of Rs 26,64,090/- on a total taxable value of Rs 2,96,01,000.
the applicant is of the view that they are entitled to avail ITC on the invoice dated 01.04.2020 on or before filing the GSTR 3B for September 2021 or the date of filing of Annual Return for the financial year 2020-2021 whichever is earlier.The restriction under Sec 16(4) does not apply to the invoice dated 01 04 2020 issued in the instant case for renting / leasing services supplied in the year 2018- 2019.
The Authority observed that for any transaction, the tax invoice is the primary document evidencing the supply and vital for availing input tax credit‘. The ‘tax invoice’ is issued by the lessor on 01.04 2020 for the services supplied in the financial year 2018-2019.Theinvoicehasnotbeenissued within the stipulated time as prescribed in Rule 47.
The Authority further observed that as per section 16(4) the applicant was mandated to claim input tax credit before the due date of furnishing ofthereturn undersection39for September 2019 followingtheendof the financial year 2018-2019 to which such invoice pertains or furnishing of the relevant annual return for the year 2018-2019, whichever is earlier.
The Coram of Mr. D. Ramesh, Member (State Tax) and Mr. RV Pradhamesh Bhanu, Member (Central Tax) has held “the invoice referred pertains to the Services rendered in the financial year 2018-2019 and hence it is hit by the limitation for claiming lTC under Section16(4)”
Mr. Narsi Reddy appeared on behalf of the applicant.
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