Input Tax Credit availability must trigger distribution only when legal entitlement arises, not merely on invoice issuance.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Rule 39(1)(a) of the GST Rules survives constitutional challenge when read with the entitlement scheme: the phrase "input tax credit available for distribution in a month" must be construed to mean ITC that has become legally available after satisfaction of entitlement conditions in Section 16(2). The Rule does not mandate distribution merely on invoice issuance; distribution is required in the month the recipient becomes entitled to credit. Show cause notices alleging delayed distribution are remitted for fresh adjudication applying this construction; petitioners given two months to file replies where applicable.....