India’s Central Board of Indirect Taxes and Customs (CBIC) recently notified retrospective amendments to section 140 of the Central Goods and Services (CGST) Act, granting it power to prescribe a time limit for availing transitioning credit—the credit from pre-GST regime that was shifted to the GST regime as input tax credit from July 1, 2017.
“The Central Government hereby appoints the 18th day of May, 2020, as the date on which the provisions of Section 128 of the Finance Act, 2020, shall come into force,” last week’s notification said.India's Central Board of Indirect Taxes and Customs (CBIC) recently notified retrospective amendments to section 140 of the Central Goods and Services (CGST) Act, granting it power to prescribe a time limit for availing transitioning credit—the credit from pre-GST regime that was shifted to the GST regime as input tax credit from July 1, 2017.#
The Delhi High Court had ruled on May 5 that time limit for transitional credit was only ‘directory’ in nature and not ‘mandatory’, allowed a three-year time limit from July 1, 2017, to claim the credits.
Aggrieved taxpayers who were unable to claim the transitional credit will reportedly have to approach the judiciary once again for a fresh interpretation of the new law.
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