Petitioner's input tax credit claim for 2018-19 invoice gets relief under Section 16(5) amendment

The Gauhati HC disposed of a writ petition challenging CGST Act provisions after finding the petitioner's grievances were addressed by the Finance (No. 2) Act, 2024. The amendment inserted sub-section (5) in Section 16, allowing input tax credit for invoices from FY 2017-18 to 2020-21 if filed by November 30, 2021. Since the petitioner's 2018-19 invoice was submitted before the deadline, the court directed respondent authorities to reconsider the matter under the new provision and prohibited coercive action against the petitioner.

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The Gauhati High Court, through an order by Chief Justice Vijay Bishnoi, addressed a writ petition concerning the Central Goods and Services Tax (CGST) Act, 2017. The court noted that with the insertion of sub-section (5) in Section 16 by the Finance (No. 2) Act, 2024, the petitioners' grievances have been redressed. Sub-section (5) states:"Notwithstanding anything contained in sub-section (4), in respect of an invoice or debit note for supply of goods or services or both pertaining to the Financial Years 2017-18, 2018-19, 2019-20 and 2020-21, the registered person shall be entitled to take input tax credit in any return under section 39 which is filed up to the thirtieth day of November, 2021."Since the petitioner submitted their invoice/debit note for the financial year 2018-19 before the deadline, their claim falls within this provision. The court directed the respondent authorities to reconsider the matter in light of this amendment and pass an appropriate order accordingly. Furthermore, it was clarified that no coercive action shall be taken against the petitioner pursuant to an earlier order dated 30-12-2023. The writ appeal was disposed of with these directions.

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