GST ITC for FY 2017-21Invoices can be Availed till Nov 30, 2021 If Return Filed: Jharkhand HC Orders Reconsideration in Light of S. 16(5) [Read Order]
The court directed fresh consideration of an ITC claim for FY 2017–21 in light of the Section 16(5) amendment allowing credit up to 30 November 2021 if the return is filed.
![GST ITC for FY 2017-21Invoices can be Availed till Nov 30, 2021 If Return Filed: Jharkhand HC Orders Reconsideration in Light of S. 16(5) [Read Order]](https://images.taxscan.in/h-upload/2026/01/22/2121322-gst-itc-fy-invoices-return-filed-jharkhand-hc-orders-reconsideration-taxscan.webp "GST ITC for FY 2017-21Invoices can be Availed till Nov 30, 2021 If Return Filed: Jharkhand HC Orders Reconsideration in Light of S. 16(5) [Read Order]")
In a recent ruling, the Jharkhand High Court ordered reconsideration of an input tax credit dispute after taking into account the subsequent insertion of Section 16(5) of the Central Goods and Services Tax (CGST) Act 2017, which allows availment of ITC for invoices pertaining to FY 2017-21 up to 30 November 2021 if the return is filed. Manoj Kumar Singh challenged an appellate...
In a recent ruling, the Jharkhand High Court ordered reconsideration of an input tax credit dispute after taking into account the subsequent insertion of Section 16(5) of the Central Goods and Services Tax (CGST) Act 2017, which allows availment of ITC for invoices pertaining to FY 2017-21 up to 30 November 2021 if the return is filed.
Manoj Kumar Singh challenged an appellate order that denied his input tax credit claim. The petitioner had claimed ITC for October 2018 to March 2019 by filingGSTR-3B returns on 24 and 25 October 2019. The department rejected the claim as time-barred under Section 16(4) of the CGST Act.
The petitioner's counsel argued that once the conditions under Section 16(2) are fulfilled, the time limit under Section 16(4) should not defeat the right to ITC and that delay in filing returns can only attract late fees under Section 47.
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The Division Bench comprising Chief Justice M. S. Sonak and Justice Rajesh Shankar observed that after the appellate order, Section 16 was amended by inserting sub-section (5), which reads:
“(5) Notwithstanding anything contained in sub-section (4), in respect of an invoice or debit note for supply of goods or services or both pertaining to the Financial Years 2017-18, 2018-19, 2019-20 and 2020-21, the registered person shall be entitled to take input tax credit in any return under section 39 which is filed upto the thirtieth day of November, 2021.”
The court also pointed out that the CBIC issued Circular No. 237/31/2024/GST dated 15 October 2024 explaining the implementation of Sections 16(5) and 16(6).
The court quashed the appellate order and remanded the matter to the appellate authority to decide the appeal afresh after considering Section 16(5). The authority was directed to dispose of the matter within four months. All issues were left open.
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