Time Limit on GST Input Tax Credit u/s 16(4) CGST Act: Supreme Court issues Notice to Revenue
In a significant development, the Supreme Court of India has taken up the challenge to the time limit imposed for availing Goods and Services Tax ( GST ) Input Tax Credit ( ITC ) under Section 16(4) of the Central Goods and Services Tax Act, 2017.
The case, Shanti Motors v. Union of India & Ors., questions the constitutional validity of the said provision, asserting that it infringes upon Articles 14, 19(1)(g), and 300A of the Constitution of India.
The Special Leave Petition ( SLP ) challenges the constitutional validity of Section 16(4) of the CGST Act, which sets a time limit for availing Input Tax Credit ( ITC ).
The petition contends that the provision is violative of fundamental rights enshrined in Articles 14, 19(1)(g) and 300A of the Constitution.
The Supreme Court has admitted the Special Leave Petitions and issued notices to the respondents, signaling the initiation of a thorough judicial examination of the issue. Alongside admitting the SLPs, the Supreme Court has issued notice on the interim reliefs as well.
