GST credit not allowed if supplier furnishes GSTR-1 belatedly - WB AAR

 

It is to apprise you about a very critical decision by West Bengal Authority for Advance Ruling (‘AAR’) in the case of Eastern Coalfields Limited, 2021-VIL-345-AAR.

 

The AAR was dealing with the question as to whether the recipient is entitled to claim Input Tax Credit (‘ITC’) for invoices pertaining to FY 2019-20 where the supplier has furnished its Form GSTR-1, GSTR-3B and paid tax in November 2020 i.e. belatedly.

 

Facts of the case

 

·                The Applicant received certain services from a vendor in the months of Jan-Mar 2020 and availed ITC thereon. However, the vendor filed its Form GSTR-1, GSTR-3B and paid tax in November 2020 i.e. post last date for FY 2019-20.

 

·                Form GSTR-2B of the Applicant showed such ITC as ‘Return filed post annual cut-off’. Therefore, the Applicant sought advance ruling on whether ITC is available in such situation.

 

AAR decision

 

·                The AAR held that Rule 36(4) of the CGST Rules read with Section 16(2) of the CGST Act restrict ITC if the supplier has not filed Form GSTR-1, GSTR-3B and not paid the tax to the Government within the timeline prescribed.

 

·                Thus, the AAR held that ITC is not eligible to the recipient where the supplier has furnished Form GSTR-1, GSTR-3B and paid tax after the annual cut-off date.