Facts:

• The Applicant had imported goods from its overseas group companies and paid customs duties along with applicable IGST as per the Bills of Entry (BOEs) filed. Subsequently, in accordance with the vendor agreement, the Applicant paid additional consideration to the vendor, which resulted in the payment of additional customs duties and applicable IGST
• In some cases, the Applicant paid the differential duty and IGST through TR-6 challans, as per the instructions and orders of the Customs authorities. In other cases, the additional duties were paid through re-assessment of the BOE’s

Issues before the Authority:

• Whether the Applicant can avail the Input Tax Credit (ITC) of the differential IGST paid based on TR-6 Challan and if yes, whether time limit prescribed under Section 16(4) of the CGST Act would be applicable?
• Whether the eligibility to avail ITC of IGST paid vide re-assessed BOE is subject to the time limit prescribed under Section 16(4) of the CGST Act?
• Whether the time limit for availing ITC would commence from the initial date of BOE originally filed or from the date of re-assessment of BOE?

Discussion and Ruling:

• With respect to the first issue, the AAR observed that Section 16(2) of the CGST Act and Rule 36 of CGST Rules enlist certain documents such as tax invoice, debit note, bill of entry and Input Service Distributor (ISD) invoice or ISD credit note, basis which a taxpayer may avail ITC
• The words “such other tax paying documents as may be prescribed” used in Section 16(2) and “bill of entry or any similar document” used in Rule 36(1)(d) are restricted to the documents which are prescribed under the Customs Act, 1962 or rules made thereunder for the assessment of integrated tax on imports
• The AAR further relied on the judgment of the Hon’ble Supreme Court in the case of UOI and Others Vs. Cosmo Films Ltd., wherein it was held that a TR-6 challan is not a prescribed document for the purpose of availing ITC. Accordingly, the AAR ruled that ITC cannot be availed on the basis of TR-6 challans. However, ITC can be availed basis re-assessed BOE and the Applicant ought to have the bills of entry re-assessed
• The query regarding time limit under Section 16(4) of the CGST Act in case of availment of ITC on the basis of TR-6 challan was redundant
• With respect to the second query regarding applicability of time period prescribed under Section 16(4) on ITC availed via re-assessed bills of entry, the AAR observed that Section 20 of the IGST Act, 2017 stipulates that the provisions of CGST Act relating to ITC, payment of Tax, assessment, demands and recovery, offences and penalties etc shall, mutatis mutandis, apply in relation to integrated tax
• Accordingly, the time limit prescribed under Section 16(4) of the CGST Act would also apply in equal measure to the availment of ITC based on BOE in relation to integrated taxes, as much as it applies to availment of ITC based on an invoice or debit note in relation to Central tax
• Accordingly, the AAR ruled that that availment of ITC on the basis of a BOE, whether original or re-assessed, is governed by the time limit prescribed under Section 16(4) of the CGST Act (i.e., 30 November following the end of financial year to which such invoice or debit note pertains or furnishing of the relevant annual return whichever is earlier)
• With respect to the last issue, the AAR has ruled that the time limit for availing ITC would commence from the date of re-assessment of bill of entry, as the need to pay differential duties arises only when there is an upward price revision