Retrospective GST amendment on input tax credit allows rectification where credit was earlier denied for delayed return filing.

Input tax credit disallowed for delayed GSTR-3B filing was later brought within the amended section 16(5), inserted by the West Bengal GST Amendment Act, 2024 with retrospective effect from 1 July 2017. The retrospective extension of the cut-off date removed the earlier penal consequence for the relevant period, so the prior disallowance could not stand as an absolute bar. The assessee was permitted to invoke the statutory rectification mechanism before the competent authority to seek relief in light of the amended provision.

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Issues: Whether the petitioner was entitled to the benefit of the amendment inserting section 16(5) to regularise the input tax credit claim earlier disallowed for delayed filing of returns, and whether the petitioner could be permitted to seek rectification before the appropriate authority.

Analysis: The input tax credit had been disallowed only because the returns in Form GSTR 3B were filed beyond the due date. The amendment to section 16(5), inserted by the West Bengal Goods and Services Tax (Amendment) Act, 2024 with effect from 1 July 2017, extended the cut-off date and removed the penal consequence for the relevant financial years, including the period in dispute. In view of the amended position, the earlier disallowance could not be sustained as an absolute bar, and the petitioner was directed to pursue the statutory rectification mechanism.

Conclusion: The petitioner was held entitled to seek the benefit of the amended provision and was permitted to file an appropriate rectification application before the competent authority.

Final Conclusion: The writ petition was disposed of by granting liberty to pursue rectification in light of the amended GST provision.

Ratio Decidendi: Where a subsequent statutory amendment retrospectively regularises the relevant tax period, the assessee may be allowed to invoke the prescribed rectification process to seek corresponding relief.

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