gst lapse on textile vide notification no.20/2018

[Gopikishan Kabra]

according to gst notification no 20/2018 accumulated gst for textile as on 31/07/2018 will be lapse later in another notification they consider stock but it is not fair because.

1. we have paid value for the accumulated gst as well as income tax also as on 31/03/18, so we have rights to utilize the same and it was understood that we can utilize it suddenly how can government lapse the said accumulated gst.

i want to ask that does government have powers to lapse it ? should we file a case in court against said decision ?

AI Summary

Lapse of accumulated GST credits for fabrics restricts refund eligibility and prompts legal and administrative challenges.
Notification No.20/2018 prevents refund of accumulated input tax credit on account of inverted duties for specified fabric items, resulting in a lapse of accumulated ITC for those fabric categories while excluding other ITC heads like zero rated export credits. The notification is limited to fabrics, interacts with existing reversal and refund mechanisms, and raises legal issues about executive power to extinguish credited GST, retrospective effect on credits treated as working capital, allocation difficulties across pooled ITC, and potential remedies including administrative representations and writ petitions.