EXPANSION OF LIMITATION PERIOD

[Sadanand Bulbule]

Dear Sir/s

1. Since 01/07/2017 many indirect tax laws have been repealed to give effect to the CGST Act and the State GST Acts. The effect of the repeal is to obliterate the statue repealed as completely as if it had never been passed and it is to be considered as a law which never existed except for those purposes of those actions or suits which were commenced, prosecuted and concluded while it was as an existing law which are specifically saved under the respective GST Acts,

2. Legal position being so, on account of COVID-19 & consequential lockdown, the assessments which are to be concluded within five years timeline gets expired by this month end for the financial year 2015-16. The similar time limitation applies to other areas of appeals/revisions/rectifications too. Therefore whether the State Government can enlarge the time limitation period by importing the power vested under “Power to remove difficulties” of the repealed VAT Act? If yes, how about its validity?

3. Lot of academic queries are being received in this regard. Please throw light on this issue.

Mask yourself. Stay at home.

With profound regards.

AI Summary

Can State Extend Tax Assessment Limits Post-COVID? Section 172 SGST/CGST Act May Allow It. A discussion on a forum revolves around the extension of the limitation period for tax assessments due to COVID-19 disruptions. The original query questions whether the State Government can extend the limitation period under the repealed VAT Act using 'Power to remove difficulties.' Responses clarify that Section 174 of the CGST Act allows for ongoing proceedings despite the repeal of pre-2017 acts, with similar provisions in SGST Acts. It is suggested that the State Government can issue a 'Removal of Difficulties Order' under Section 172 of the SGST/CGST Act. The discussion emphasizes the legislative intent and the importance of clear communication in legal interpretations.