Time limit for taking Input Tax Credit pertaining to Financial Year 2017-18 – Recent developments

In reference to our earlier update dated November 26, 2018 on the captioned issue, we would like to apprise you regarding the recent Writ Petition filed before the Gujarat High Court in the case of AAP & Co. v. UOI, 2018 (12) TMI 620 (Guj.).

In this case, the petitioner has challenged the Press Release dated October 18, 2018 which states that time limit for taking Input Tax Credit (‘ITC’) for Financial Year (‘FY’) 2017-18 is due date of filing of Form GSTR-3B for September 2018 i.e. October 25, 2018. The petitioner contended that the original Central Goods and Services Tax Rules, 2017 (as notified on June 28, 2017) stated that Form GSTR-3B is in lieu of Form GSTR-3. However, vide Notification dated July 27, 2017, the CGST Rules were amended retrospectively and the reference to “in lieu of” was deleted. Thus, it is implied that Form GSTR-3B is in addition to GSTR-3. Basis above, the petitioner contended that due date of filing GSTR-3 shall only be relevant to determine the last date of availing credit.

Although, the above writ petition is yet to be adjudicated, this also supports NITYA’s Outlook that time limit for taking ITC is March 31, 2019.