Delayed Input Tax Credit under GST may need reconsideration after later statutory amendments and fresh merits review.

Delayed availment of Input Tax Credit under the GST enactments for the 2017-2018 and 2018-2019 assessment years was examined in light of Section 16(4) and the subsequent introduction of Sections 16(5) and 16(6) of the CGST Act, with the expected corresponding amendment in the Tamil Nadu GST Act also noted. The court considered the principle that Input Tax Credit should be granted where tax is demanded and found it appropriate for the matter to be reconsidered in the light of the amended legal position. The impugned order was set aside and the matter was remitted for fresh decision on merits and in accordance with law.

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Issues: Whether the order rejecting delayed availing of Input Tax Credit under the GST enactments could be sustained in view of the subsequent amendment and whether the matter should be remitted for fresh consideration.

Analysis: The dispute related to the delayed availing of Input Tax Credit for the assessment years 2017-2018 and 2018-2019 under Section 16(4) of the GST enactments. The Court noted the subsequent legislative amendment introducing Sections 16(5) and 16(6) of the Central Goods and Services Tax Act, 2017, and the expected corresponding amendment in the Tamil Nadu Goods and Services Tax Act, 2017. It also took note of the principle that Input Tax Credit should be granted where tax is demanded and considered it appropriate to have the matter reconsidered in the light of the amendment.

Conclusion: The impugned order was set aside and the matter was remitted to the respondent for passing a fresh order on merits and in accordance with law.

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