Input tax credit— Section 16 of CGST Act— The present appeal has been filed against the Advance Ruling issued by Authority for Advance Ruling, Andhra Pradesh.

The main subject of contention is the issuance of a tax invoice dated 1.04.2020 for monthly rental services extended from April 2018 to March 2019 and its eligibility thereon to claim input tax credit under Sec.16(4).

In the instant case, as the invoice pertains to the financial year 2018-19, vide Section 16(4) (4), the recipient is entitled to take ITC on an the same before furnishing of Return “under section 39 for the month of September, 2019 following the end of financial year 2018-19 to which such invoice pertains or furnishing of the relevant annual return for the year 2018-19, whichever is earlier.

The lower authority had held in its ruling as under:

“The provisions of section 31 (2) read with Rule 47, prescribe a time limit for issue of invoice. As per Rule 47, tax invoice in case of supply of service shall be issued within a period of 30 days from the date of services. Since in this case, invoice was not issued within the prescribed time limit, the appellant is not eligible for credit.”

Held that— It is our considered view that the appellant is not eligible to claim Input Tax Credit on the disputed invoice dated 01.04.2020 that was issued covering the supply of services pertaining to the period from 01.04.2018 to 31.03.2019.