ITC can’t be claimed in respect of tax invoice issued in FY 20-21 for rental service supplied in FY 18-19: AAR

Case Details: Authority for Advance Rulings, Andhra Pradesh Vishnu Chemicals Ltd., In re - [2022] 140 taxmann.com 616 (AAR-ANDHRA PRADESH)

Judiciary and Counsel Details

• • D. Ramesh and A. Syam Sundar, Member
  • Narsi Reddy for the Applicant.

Facts of the Case

The applicant was a manufacturer and it entered into lease agreement for leasing of warehouses for storage of goods. It received invoice for renting of services for FY 2018-19 on April 1, 2020. It filed an application for advance ruling to determine whether it would be allowed to claim ITC of renting services received in FY 2018-19 on basis of invoice dated April 1, 2020.

AAR Held

The Authority for Advance Ruling observed that the tax invoice was not been issued within 30 days from date of supply of rental services which is essential requirement in terms of Rule 46 of CGST Rules, 2017. The invoice issued in FY 2020-21 pertained to FY 2018-19 in which rental services were supplied. Therefore, the ITC can’t be claimed for GST paid in respect of tax invoice issued in FY 2020-21 for rental service supplied in FY 2018-19 as it would be hit by time-limit prescribed in section 16(4) of CGST Act, 2017.