Query: I am a clearing and forwarding agent. While clearing import containers some of these are not cleared due to some duty variance. So, the containers were stored in port yard and my supplier raise a invoice yard rent with GST in favor of me (in the name of clearing and forwarding agent) on Feb;2021. In the same time, I raised a tax bill for my customer but they requested me to raise bill after cleared the containers. Now I cleared the containers on 01/06/2021 and I raised a tax invoice with GST. Can I adjust Feb 2021 ITC against the service raised by me now and what is the time limit to avail the ITC. [Query reproduced as appearing in the portal].
Comment:
In terms of Section 16(4) of the CGST Act, 2017 the time limit to claim / avail the input tax credit is the due date of furnishing the return in Form GSTR 3B for the tax period September following the end of the financial year during which the tax invoice is issued or the date of furnishing the annual return, whichever is earlier.
In the instant case, the tax invoice on the inward supply of yard rent is issued to you (You: being the clearing and forwarding agent) during February 2021. Therefore, input tax credit in relation to the invoice raised by the supplier on you (i.e., the clearing and forwarding agent) can be claimed in any of the returns filed by you, in Form GSTR – 3B on or before the due date of filing the return for the tax period September 2021 [viz., October 20, 2021].
It is made clear that the recipient (in this case, You) would be entitled to claim the input tax credit based on a suppliers’ invoice only when the Supplier uploads the transaction in Form GSTR 1, files his return in Form GSTR 3B and pays the corresponding output taxes. It would necessarily mean that in such a situation the transaction uploaded by the Supplier would stand reflected on the Portal in your Form GSTR 2A and 2B. It is only when the transaction is so reflected in your portal in Form GSTR 2A / 2B that you will be entitled to avail the corresponding input tax credit in that month. [This view is in line with the conditions as specified in Section 16(2) of the CGST Act, 2017]. On the presumption that the credit is reflecting on your Portal in Form GSTR 2A / 2B during the tax period June 2021 you will be entitled to avail and utilise the corresponding input tax credit against the output tax payable.
In the event you had already issued a tax invoice prior to 1st June 2021 to your customer, you are required to issue a corresponding credit note and thereafter issue a fresh tax invoice.
June 4, 2021 at 5:09 am