IGST Credit on Imports Barred Beyond Time Limit | AAR

Case Details: Adi Enterprises, In re [2025] 175 taxmann.com 652 (AAR-MAHARASHTRA)

Judiciary and Counsel Details

• D.P. Gojamgunde & Ms Priya Jadhav, Member

Facts of the Case

The Applicant imported machinery from China and discharged IGST liability through a duly filed Bill of Entry. Although the IGST amount was reflected in GSTR-2A and subsequently in GSTR-2B, the Applicant failed to avail the corresponding input tax credit (ITC) in the GSTR-3B return for the relevant financial year. Upon realisation, the Applicant sought to avail the unclaimed IGST credit through a subsequent return. The Applicant approached the Authority for Advance Ruling (AAR), Maharashtra, seeking clarification on whether ITC based on a Bill of Entry could be availed beyond the prescribed limitation period under the CGST Act. The matter was accordingly placed before the Authority for Advance Ruling (AAR), Maharashtra.

 AAR Held

The Authority for Advance Ruling (AAR), Maharashtra held that the time limit for availing ITC, as stipulated under Section 16(4) of the CGST Act, 2017, is applicable even to IGST paid through a Bill of Entry. It interpreted the term ‘invoice’ under Section 16(4) to include any valid document evidencing tax payment, such as a Bill of Entry, for the purpose of ensuring harmonious application of the provision. The AAR further held that the legislative intent of Section 16(4) is to enforce timely availment of ITC and prevent indefinite deferment of credit claims, which applies uniformly across all categories of ITC, including import transactions. Consequently, the Applicant was not entitled to avail the unclaimed IGST credit through any subsequent return. The ruling affirms that the statutory time limit under Section 16(4) of the CGST Act governs all ITC claims, including those based on Bills of Entry.