TR-6 challan not eligible document for ITC availment: AAR Tamilnadu

In re Tvl. Becton Dickinson India Private Limited (GST AAR Tamilnadu)

The Tamilnadu GST Authority for Advance Ruling (AAR), in the case of In re Tvl. Becton Dickinson India Private Limited, addressed key questions regarding the eligibility and time limits for availing Input Tax Credit (ITC) on Integrated Goods and Services Tax (IGST) paid on imported goods. The applicant, involved in importing medical equipment from related overseas companies, frequently made “true-up” adjustments to import prices based on Arm’s Length Price (ALP) principles, as per a Special Valuation Branch (SVB) order. This led to differential customs duties, including IGST, being paid either through re-assessed Bills of Entry (BOE) or TR-6 challans, depending on the customs port.

The AAR ruled that a TR-6 challan, even when read with an SVB order and tax authority letters, is not an eligible document for availing ITC. This clarifies that while a BOE or similar document prescribed under the Customs Act is valid for ITC on import IGST, a TR-6 challan does not fall into this category. Regarding the time limit for availing ITC on differential IGST, the AAR stated that it would commence from the date of re-assessment of the Bill of Entry, not from the initial filing date. This decision addresses the documentation requirements and the applicable timeframes for ITC claims stemming from post-importation price adjustments.