No Applicability of Time Limit to Avail ITC on Import IGST Paid via TR-6 Challan, Not an Eligible Document: AAR Rules in Becton, Dickinson India’s Case [Read Order]

The Tamil Nadu Authority for Advance Ruling (AAR) has ruled that there arises no question of time limit to avail Input Tax Credit (ITC) on Import Integrated Goods and Services Tax (IGST) paid with the TR-6 Challan since the TR-6 challan is not an eligible document for the availment of Input Tax Credit.

The applicant, Becton Dickinson India Private Limited, is a private limited company engaged in the manufacturing and trading of medical equipment and devices. They also import and trade the same.

The Applicant has filed an application seeking an Advance Ruling on the question regarding the availability of ITC on the import Integrated Goods and Services Tax (IGST), which are paid through TR-6 Challan in terms of Section 16(2) of the CGST Act and read with Rule 36 of the CGST Rules.

The applicant argued that ITC should be available for IGST paid through TR-6 challans. They contended that TR-6 challans which are read with the Special Valuation Branch (SVB) order and customs authorities’ letters, should also be considered valid duty-paying documents for the purpose of claiming ITC, as per Section 16(2) of the CGST Act and Rule 36 of the CGST Rules.

The AAR observed that only such documents like Bill of Entry, Courier Bill of Entry and other Declarations/Forms prescribed under the Customs Act, 1962 or rules made thereunder should be covered under clause (d) for the purposes of availment of ITC.

The order further stated that neither a TR-6 challan as such, nor a TR-6 challan read with the SVB order and letters issued by the tax authorities, as claimed by the applicant can be considered as an eligible document for availment of ITC.

The AAR comprising Balakrishnan S (CGST Member) and B Suseel Kumar (SGST Member) concluded that since TR-6 challan is not an eligible document for ITC, the query regarding applicability of the time limit prescribed under Section 16(4) of the CGST Act to ITC on import IGST paid via TR-6 challan “does not arise”.

Consequently, the applicability of the time limit for claiming ITC under Section 16(4) became irrelevant for such payments and ITC eligibility is governed by the time limits under Section 16(4), when it is paid through reassessed bills of entry.

The applicant was represented by K Sivarajan.

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