No ITC on invoices raised for the past period as hit by Period of Limitation

Last updated: 23 August 2022

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The Andhra Pradesh Authority for Advance Ruling (AAR) has decided that a company cannot claim Input Tax Credit (ITC) on monthly rental invoices if they are raised after the statutory time limit. The ruling stated that the tax invoice must be issued within 30 days of the supply of service to be eligible for ITC under Section 16(4) of the CGST Act. Therefore, invoices for past periods, even if claimed before the GSTR 3B or annual return filing deadline, are not eligible for ITC.

Court :
AAR, Andhra Pradesh

Brief :
The AAR, Andhra Pradesh, in the matter of M/s. Vishnu Chemicals Limited, [AAR No.21lAP/GST/2021 dated July 20, 2021] has held that no Input Tax Credit ("ITC") on monthly rental tax invoices raised after the expiry of the period of limitation.

Citation :
AAR No.21lAP/GST/2021 dated July 20, 2021

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1 Year PLAN - Rs.~~1999~~

1799

(Excl. of GST ₹323)

2 Years PLAN - Rs.~~3499~~

3149

(Excl. of GST ₹566)

BEST VALUE

3 Years PLAN - Rs.~~4999~~

4499

(Excl. of GST ₹809)

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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