Expanded input tax credit under amended GST law must be reconsidered, with coercive recovery stayed meanwhile.

The amended Section 16(5) of the CGST Act, inserted by the Finance (No. 2) Act, 2024, extended input tax credit entitlement for specified invoices or debit notes where the return under Section 39 was filed up to 30.11.2021. As the petitioner's invoice/debit note related to FY 2018-19 and was stated to have been submitted before that date, the claim fell within the amended provision and had to be reconsidered accordingly. Coercive action under the earlier order was also prohibited while the claim was being examined under the amendment.

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Issues: (i) Whether the petitioner's claim for input tax credit fell within the scope of Section 16(5) of the Central Goods and Services Tax Act, 2017 after the amendment brought in by the Finance (No. 2) Act, 2024. (ii) Whether coercive action pursuant to the order dated 30.12.2023 could be continued against the petitioner.

Issue (i): Whether the petitioner's claim for input tax credit fell within the scope of Section 16(5) of the Central Goods and Services Tax Act, 2017 after the amendment brought in by the Finance (No. 2) Act, 2024.

Analysis: The amended provision inserted sub-section (5) in Section 16 and extended entitlement to input tax credit in respect of invoices or debit notes relating to the specified financial years, where the return under section 39 was filed up to 30.11.2021. The petitioner's invoice/debit note related to financial year 2018-19 and was stated to have been submitted before 30.11.2021.

Conclusion: The matter was held to fall within Section 16(5), and the respondent authorities were directed to consider the claim accordingly.

Issue (ii): Whether coercive action pursuant to the order dated 30.12.2023 could be continued against the petitioner.

Analysis: The order expressly protected the petitioner from any coercive steps in relation to the earlier order while the matter was being considered under the amended provision.

Conclusion: Coercive action against the petitioner was prohibited.

Final Conclusion: The writ appeal was disposed of with directions for reconsideration of the petitioner's claim under the amended GST provision and with protection against coercive action meanwhile.

Ratio Decidendi: Where a subsequent statutory amendment expressly enlarges the period for availing input tax credit, the claim must be examined in light of the amended provision and coercive recovery should not be pursued pending such consideration.

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