Transitional input tax credit under GST turns on Rule 117 filing deadlines and the reach of procedural compliance.

Transitional input tax credit under Section 140 of the CGST Act and Rule 117 of the CGST Rules is examined in relation to a delayed declaration. The petitioner contends that unutilized input tax credit carried into the GST regime remains available subject to the prescribed conditions, and that failure to file the Rule 117(1) declaration within time is either inapplicable or merely procedural. The petitioner also seeks to rely on Rule 117(4) to claim the credit notwithstanding delay. The matter concerns the interaction between transitional credit entitlement, procedural filing requirements, and the scope of the rule-based relaxation.

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Issues: Whether the petitioner could claim transitional input tax credit under Section 140 of the Central Goods and Services Tax Act, 2017 read with Rule 117 of the Central Goods and Services Tax Rules, 2017 despite not filing the declaration within the time prescribed under Rule 117(1), and whether Rule 117(4) applied to the petitioner's claim.

Analysis: The order records the petitioner's contention that, at the transition to the GST regime, unutilized input tax credit was available under Section 140, subject to conditions and procedure under Rule 117. It also notes the contention that the requirement of filing the declaration under Rule 117(1) was not applicable to the petitioner, or in any event was only procedural, and that the petitioner sought to invoke Rule 117(4) for claiming such credit notwithstanding the delay.

Outcome: Notice issued, returnable on 3 May 2018, with direct service permitted.

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