The West Bengal Authority of Advance Ruling ruled that the Input Tax Credit (ITC) not allowable on invoices for the period of January to March-2020 for which supplier has furnished FORM GSTR-1 and FORM GSTR-3B.
The applicant, Eastern Coalfields Ltd is a producer and supplier of coal and has received services from M/s Gayatri Projects Ltd and has availed of input tax credit during the tax periods January 2020, February 2020 and March 2020 respectively against 3 invoices issued by the said supplier of services. Payments against such supplies have also been made by the applicant.
The applicant has sought the advance ruling on the issue whether the applicant is entitled for input tax credit already claimed by him on the invoices raised by M/s Gayatri Projects Ltd. pertaining to the period Jan-2020, Feb-2020 and March-2020 for which the supplier has actually paid the tax charged in respect of such supply to the Government, either in cash or through utilization of input tax credit admissible in respect of such supply.
Yet another issue raised was whether the applicant has to reverse the said ITC already availed by him where M/s Gayatri Project Ltd. has actually paid the tax, though belatedly and fulfilled the responsibility cast upon them by Section 16(2)(c) of CGST Act, 2017 and all other conditions as mentioned in Section 16(2)(a), 16(2)(b), and 16(2)(d) are fulfilled by the applicant.
The coram of members Brajesh Kumar Singh and Joyjit Banik ruled that the applicant is not entitled for input tax credit claimed by him on the invoices raised by M/s Gayatri Projects Ltd. pertaining to the period Jan-2020, Feb-2020 and March-2020 for which the supplier has furnished FORM GSTR-1 and FORM GSTR-3B in the month of November’20 and the applicant is, therefore, required to reverse the said input tax credit.
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