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  • Writer's pictureRajesh Audithyan

AVAILING IGST INPUT TAX CREDIT PAID THROUGH TR6 CHALLAN - WHETHER TIME LIMIT U/S 16(4) CGST ACT2017

Updated: Apr 21, 2023

It is common now a days that the importers are getting pre consultative audit notices from Customs Department demanding difference in customs duty and IGST along with interest. Most of the importers agrees the demand made by Customs Dept and pay through manual TR6 challan by referring relevant BoE numbers. Now the question is how to take input credit of IGST alone since recall and reassess the BoE is time consuming and most of the BoEs would have gone to History stage ? This question is discussed by most of the Customs Brokers and importers frequently hence I thought of making a study in detail about the legal procedures applicable for availing such IGST input credit.


Let us take an illustration. Import of goods cleared during FY 19-20 but notice received from Customs Dept during FY 21-22 for short paid IGST.

In this scenario importer pays IGST along with Interest @15% through manual TR6 challan and ITC claimed voluntarily on the same in Import of Goods in GSTR-3B during FY 21-22. Whether any issue will be faced in future on the ITC taken through challan during FY 21-22 for import of goods pertaining to FY 19-20?


1.The time limitation of availing input tax credited is mentioned in 16(4) of CENTRAL GOODS AND SERVICES TAX ACT, 2017 which reads as follows ;

“ A registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after the [thirtieth day of 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”


2.Now the another question is whether the Bill of entry/TR6 will fall under the ambit of invoice or debit note ??

In our view TR 6 challan is not a specified document for availing ITC but it will fall under “such other tax paying documents as may be prescribed “ u/s 16 (2)(a) CENTRAL GOODS AND SERVICES TAX ACT, 2017. So, credit on the strength of TR-6 should be allowed.


3.Next important point is that there is no time limit mentioned for availing credit through BoE. ITC Time limit in the law is only for invoice and debit notes. Also we are on the view that availing ITC under the law is linked to the document date on which credit is availed and not to the time when the supply is made.


Also, In an appeal order, The Commissioner ( Appeals ) Rajkot in the case of M/s.Reliance Industries Ltd Jamnagar opined as follows which is favorable to assesses availing ITC against TR6 challan.


“Time limit prescribed under Sec 16(4) for taking ITC is not applicable for ITC availed on the strength of BoE. BoE is neither an invoice nor a debit note”


**Hence, we are on the view that ITC can be claimed by importers on the strength of BoE and TR6 documents through GSTR 3B even it is time barred u/s 16(4)


**Disclaimer : The opinion given above is ex facie view as per prevailing tax laws and the same should not be construed as professional or legal advice. Hence request readers act accordingly as per your interpretation of law.



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