Section 16(4)—Whether Applicable During Financial Year 201718 to 202021—CA. Satyadev Purohit

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The Tax Publishers GST--Input Tax Credit Section 16(4)--Whether Applicable During Financial Year 2017-18 to 2020-21 CA. Satyadev Purohit Section 16(4) of the Central Goods and Services Tax Act, 2017 provides limitation period for claiming input tax credit relating to any invoice or debit note. In this write-up the learned author seeks to analyse an issue as to whether the limitation period contained under section 16(4) was legally applicable for the period 2017-18, 2018-19, 2019-20, 2020-21 and from 1-4-2021 to 31-12-2021. 1. Eligibility and conditions for taking input tax credit Section 16 of the Central Goods and Services Tax Act, 2017 (in short "the CGST Act") deals with eligibility and conditions for taking input tax credit. As per sub-section (1) of section 16, every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person. The conditions for claiming input tax credit are specified under sub-section (2) of section 16 of the CGST Act, which the during the relevant period read under: (2) Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless, - (a) he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed; (b) he has received the goods or services or both. Explanation.--For the purposes of this clause, it shall be deemed that the registered person has received the goods or, as the case may be, services SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

GST--Input Tax Credit

Section 16(4)--Whether Applicable During Financial Year 2017-18 to 2020-21

CA. Satyadev Purohit

Section 16(4) of the Central Goods and Services Tax Act, 2017 provides limitation period for claiming input tax credit relating to any invoice or debit note. In this write-up the learned author seeks to analyse an issue as to whether the limitation period contained under section 16(4) was legally applicable for the period 2017-18, 2018-19, 2019-20, 2020-21 and from 1-4-2021 to 31-12-2021.

1. Eligibility and conditions for taking input tax credit

Section 16 of the Central Goods and Services Tax Act, 2017 (in short "the CGST Act") deals with eligibility and conditions for taking input tax credit.

As per sub-section (1) of section 16, every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person.

The conditions for claiming input tax credit are specified under sub-section (2) of section 16 of the CGST Act, which the during the relevant period read under:

(2) Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless, -

(a) he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed;

(b) he has received the goods or services or both.

Explanation.--For the purposes of this clause, it shall be deemed that the registered person has received the goods or, as the case may be, services