Retrospective input tax credit relief under the CGST Act revived claims filed within the extended statutory period.

The retrospective insertion of section 16(5) of the CGST Act was treated as overriding the restriction in section 16(4) for specified invoices and debit notes, extending the period to avail input tax credit up to 30.11.2021 for the relevant financial years. Because the returns were filed within that extended period, disallowance of credit only on the basis of limitation under section 16(4) was not sustainable. The petitioner's input tax credit claim was therefore required to be reconsidered under section 16(5), and the rejection orders were set aside with remand for fresh adjudication.

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Issues: Whether the petitioner was entitled to avail input tax credit in view of the retrospective insertion of section 16(5) of the CGST Act, notwithstanding the restriction in section 16(4), and whether the impugned orders disallowing the credit could stand.

Analysis: The entitlement to input tax credit was examined against the later amendment inserting section 16(5), which operates notwithstanding section 16(4) and extends the time for availing credit for invoices or debit notes pertaining to the specified financial years up to 30.11.2021. The returns in question had been filed within the relevant extended period, and the legislative amendment, as clarified by the departmental circular and notification, was treated as applicable to the claim. On that basis, the disallowance of credit solely on limitation under section 16(4) was not sustainable.

Conclusion: The petitioner was entitled to have the input tax credit claim reconsidered in the light of section 16(5), and the orders rejecting the claim were set aside with a remand for fresh adjudication.

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