AUTHORITY FOR ADVANCE RULING TAMIL NADU GOODS & SERVICE TAX

Neither a TR-6 challan as such, nor a TR-6 challan read with the SVB order and letters issued by the tax authorities, as claimed by the applicant in the instant case can be considered as an eligible document for the purpose of availment of ITC. The time limit for availing ITC on the differential IGST paid would begin from the date of re-assessment of bill of entry.

BACKGROUND:

The applicant is a private limited company engaged in the manufacturing and trading of medical equipment/devices. The applicant has paid differential import IGST on import of goods in pursuance of True up adjustment (on account of maintaining ALP margin as per Income Tax provisions). The differential import IGST is paid vide TR-6 challans and vide re-assessed bill of entries.

ISSUE RAISED:

Admissibility of input tax credit of tax paid or deemed to have been paid.

QUESTION(S) ON WHICH ADVANCE RULING IS REQUIRED

The applicant has preferred this application seeking an Advance Ruling on the following question:

1. Whether the Applicant can avail the ITC of the import IGST paid through TR-6 Challan in terms of Section 16(2) of the CGST Act read with rule 36 of CGST Rules?
2. Whether the eligibility to avail ITC of the import IGST paid vide TR-6 Challan is subject to the time limit prescribed under Section 16(4) of the CGST Act?
3. Whether the eligibility to avail ITC of the import IGST paid vide re-assessed bill of entry is subject to the time limit prescribed under Section 16(4) of the CGST Act?
4. If the answer to Q.3 for bill of entry is in affirmative, whether the time limit for availing ITC would begin from the initial date of bill of entry originally filed or from the date of re-assessment of bill of entry?

IMPORTANT PARA

Para 6.17 This apart, we find that the time limit prescribed under Section 16(4) of the CGST Act, 2017, has been structured in such a way that no ITC could be availed “after the thirtieth day of November following the end of financial year to which such invoice or debit note pertains or furnishing of the relevant annual return, whichever is earlier”. The aforesaid style of phrasing is peculiar to this provision, as compared to various other provisions of the Act, ibid, where the time limit is expressed in simple terms, like 30 days, 90 days, 180 days, three months, three years, five years, etc. Whereas, the time limit for availing ITC is ideally fastened to the furnishing of annual return, or with a specific day, viz., the thirtieth day of November following the end of financial year, which indicates that the entire scheme of ITC availment which starts with the periodical monthly returns, should come to an end by the time the annual return is filed, or finalised by the thirtieth day of November following the end of financial year, whichever is earlier. Accordingly, we are of the considered opinion that availment of ITC on the basis of a bill of entry’, whether original or re-assessed, is governed by the time limit as prescribed under Section 16(4) of the CGST Act, 2017.

Para 6.18 Coming to the 4th query raised by the applicant, viz., “If the answer to Q.3 for bill of entry is in affirmative, whether the time limit for availing ITC would begin from the initial date of bill of entry originally filed or from the date of re-assessment of bill of entry?”, we are of the opinion that this query needs to be answered, as we have answered the third query in affirmative. In this regard, if the payment of differential duties of customs is a fall-out of the SVB order and letters issued by the tax- authorities, as discussed in the instant case, we reckon that the time limit for availing ITC would ideally begin from the date of re-assessment of bill of entry, as the payment of differential duties of customs including IGST, interest thereon, etc., is necessitated only when an upward price revision takes place at a later date.

RULING:

In View of the above we rule as under:-

• Neither a TR-6 challan as such, nor a TR-6 challan read with the SVB order and letters issued by the tax authorities, as claimed by the applicant in the instant case can be considered as an eligible document for the purpose of availment of ITC.
• As TR-6 challan cannot be considered as an eligible document for the purpose of availment of ITC, the question of answering this query does not arise.
• Availment of ITC on import IGST on the basis of a re-assessed bill of entry, is very much governed by the time limit as prescribed under Section 16(4) of the CGST Act, 2017.
• The time limit for availing ITC on the differential IGST paid would begin from the date of re-assessment of bill of entry.