Finance (No.2) Act, 2024

[Subbarao PV]

Section 150 of the Finance (No.2) Act, 2024 relating to the CGST Act, 2017 reads as follows:-

'150. No refund shall be made of all the tax paid or the input tax credit reversed, which would not have been so paid, or not reversed, had section 118 been in force at all material times.'

Are we to read this as part of III Schedule, which has no relevance to the above issue or is it a new section or is it part of any other section?

May kindly be clarified.

[Shilpi Jain]

Section 118 of FA 2024 refers to the amendment done in section 16(4) for the periods up to 20-21 extending the time limit to avail credit up to 30-11-2021

[Subbarao PV]

Good morning and thank you madam

But my query is

Are we to read this as part of III Schedule, which has no relevance to the above issue or is it a new section or is it part of any other section

[KASTURI SETHI]

W.r.t. query at serial no. 2 above, my reply is, 'NO'. Govt.'s intention is not to allow refund.

Do you want to treat IT as equal to Negative List existed in Service Tax era ?

[KASTURI SETHI]

In continuation of my above post, it is relevant to mention that no reversal of Cenvat Credit was required in respect of  input services covered in Negative List in Service Tax law.

[Emmar Walker]

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AI Summary

Refund prohibition for input tax credit prevents recovery where amended credit time provisions would have precluded entitlement.
Section 150 bars refunds of tax paid or input tax credit reversed if such amounts would not have been paid or reversed had Section 118 been in force; Section 118 amends the time limit for claiming input tax credit by modifying section 16(4), and commentators view Section 150 as a legislative measure to deny refunds that arise solely from the retrospective application of the amended credit time limit.