Input Tax Credit cannot be claimed on debit notes issued in Financial year 2020-21 pertaining to the transactions made in Financial year 2018-19.

Facts– The applicant M/s. I-tech Plast India Pvt. Ltd., Survey No. 108-109, Bhavnagar-Rajkot Highway, Shampara, Bhavnagar is engaged in the business of manufacturing and supply of toys made up of plastic and/or rubber or both wherein essentially plastic is the main component.

There is a question before AAR that what is the appropriate classification and rate of GST applicable on supply of the Plastic Toys under CGST and SGST and can the applicant claim input tax credit in relation to CGST-SGST separately in debit notes issued by the supplier in current financial year i.e. 2020-21, towards the transactions for the period 2018-19?

Held– The plastic toys manufactured and supplied by the applicant are correctly classifiable under Heading 9503 00 30 of Chapter 95 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and chargeable @12% (6% SGST + 6% CGST) under Entry No. 228 in Schedule-II of the Notification No. 1/2017-Central Tax (Rate), dated 28-6-2017.

The applicant shall be entitled to claim the input tax credit only in respect of debit notes issued by the supplier towards the transactions entered into and goods supplied to the applicant during the financial year 2018-19, on or before the due date of furnishing of the return under Section 39 for the month of September following the end of the said financial year 2018-19 or furnishing of the relevant annual return, whichever is earlier. Hence, the applicant cannot claim input tax credit in relation to CGST-SGST separately in debit notes issued by the supplier in current financial year i.e. 2020-21, towards the transactions for the period 2018-19.

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