https://www.taxtmi.com/caselaws?id=762346 The MP HC struck down the time limit for claiming Input Tax Credit (ITC) under Section 16(4) of the CGST Act, ruling it violates Article 14 of the Constitution. The court held that restricting ITC claims solely because returns were filed after prescribed dates is arbitrary, as taxpayers already paid tax to suppliers including the tax component. The provision creates double punishment - taxpayers pay late fees and interest for delayed filing, then lose ITC entitlement, effectively paying tax twice for the same default. The court noted that without provisions for revised returns, taxpayers exercise caution in filing March returns to avoid mismatches. Since the Central Government proposed amendments removing time limits through the 2024 Act, the court allowed petitions without examining constitutional validity. The treasury receives adequate compensation through late fees and interest payments. en-us Fri, 22 Nov 2024 00:00:00 +0530 Wed, 27 Nov 2024 14:33:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=762346 The MP HC struck down the time limit for claiming Input Tax Credit (ITC) under Section 16(4) of the CGST Act, ruling it violates Article 14 of the Constitution. The court held that restricting ITC claims solely because returns were filed after prescribed dates is arbitrary, as taxpayers already paid tax to suppliers including the tax component. The provision creates double punishment - taxpayers pay late fees and interest for delayed filing, then lose ITC entitlement, effectively paying tax twice for the same default. The court noted that without provisions for revised returns, taxpayers exercise caution in filing March returns to avoid mismatches. Since the Central Government proposed amendments removing time limits through the 2024 Act, the court allowed petitions without examining constitutional validity. The treasury receives adequate compensation through late fees and interest payments. Case-Laws GST Fri, 22 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=762346