Retrospective Change to CGST Act Section 140 Legalizes Rule 117 Time Frame, Impacting CENVAT/ITC Credit Carry Forward. The government has retrospectively amended Section 140 of the Central Goods and Services Tax (CGST) Act to legalize the time frame under Rule 117 of the CGST Rules, affecting the carry forward of CENVAT/ITC Credit by taxable persons under the GST regime. This amendment nullifies previous judicial decisions favorable to taxable persons. The author argues that such retrospective changes violate property rights under Article 300A of the Indian Constitution. (AI Summary)
By prescribing the phrase 'within such time' retrospectively, in section 140, CGST Act, the Govt. has legalised the time frame prescribed under rule 117, CGST Rules for lapsing CENVAT/ITC Credit carry forwad by a taxable persons under GST regime and nullified various judicial decisions decided in favour of taxable persons.
In my view, such type of retrospective amendment in section 140, CGST Act is against property right under Art. 300A, Constitution of India.
CA Om Prakash Jain
Jaipur
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