2024 (12) TMI 1440 - HC - GST

Availment of ITC - barred by limitation in terms of Section 16(4) of the CGST Act - HELD THAT - In the light of subsequent developments took place, whereby, Section 16 of the CGST Act was amended and sub-section (5) was inserted to Section 16, which came into force with retrospective effect from 01.07.2017, the petitioners are entitled to avail ITC in respect of GSTR-3B filed in respect of financial years 2017-18, 2018-19, 2019-20 and 2020-21 as the case may be, on or before 30.11.2021 and all the orders to the contrary are quashed and set aside. Petitioners are at liberty to avail all the benefits as available to them under the Circular No. 237/31/2024-GST dated 15th October, 2024. Petition disposed off.

Summary

In the judgment delivered by the Himachal Pradesh High Court, the bench comprising Acting Chief Justice Tarlok Singh Chauhan and Justice Satyen Vaidya addressed multiple writ petitions concerning the availment of Input Tax Credit (ITC) under the Central Goods and Services Tax (CGST) Act. The core issue was the limitation on ITC availment as per Section 16(4) of the CGST Act. The court noted that Section 16 was amended, with sub-section (5) inserted retrospectively effective from July 1, 2017. This amendment entitles the petitioners to avail ITC for GSTR-3B filings for the financial years 2017-18 to 2020-21, provided they were filed on or before November 30, 2021. Consequently, any orders contradicting this entitlement were quashed. The petitioners were also granted the liberty to avail benefits under Circular No. 237/31/2024-GST dated October 15, 2024. All petitions and pending applications were disposed of accordingly.