Input tax credit for prior-year invoice or debit note to be examined under section 16(5), with coercive action restrained.

Input tax credit claims for an invoice or debit note relating to financial year 2018-19 were to be examined in light of section 16(5) of the CGST Act, 2017 as inserted by the Finance (No. 2) Act, 2024. The HC directed the respondent authorities to consider the petitioners' claim accordingly and restrained coercive action under the impugned order until such consideration was made.

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Issues: Whether the petitioners' claim to input tax credit for an invoice or debit note pertaining to the financial year 2018-19 was covered by section 16(5) of the Central Goods and Services Tax Act, 2017, and whether the authorities should be directed to consider the matter accordingly.

Outcome: The writ petition was disposed of with a direction to the respondent authorities to consider the matter in the light of section 16(5) of the Central Goods and Services Tax Act, 2017 inserted by the Finance (No. 2) Act, 2024, and with a restraint against coercive action pursuant to the impugned order.

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