No ITC for tax paid due to fraud, willful misstatement, or suppression of facts

In re Mitsubishi Electric India Private Limited (GST AAR Tamilnadu)

This article analyzes the Advance Ruling (AAR) issued by the Tamil Nadu Authority for Advance Rulings (AAR) in the case of “In re Mitsubishi Electric India Private Limited” (GST AAR No. [mention number]). It focuses on the implications for businesses regarding claiming Input Tax Credit (ITC) on differential Integrated Goods and Services Tax (IGST) paid following a customs post-clearance audit.

Case Background:

Mitsubishi Electric India Private Limited (the applicant) imported goods during FY 2018-19, 2019-20, and 2020-21. The company claimed ITC on the IGST paid as part of the customs duty. However, a customs audit revealed misclassification of the imported goods. Consequently, the applicant paid differential customs duty and IGST after discussions with the customs authorities.

Key Issue:

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