Transitional credit - Unutilized amount of Advanced VAT paid - ...

Unused VAT Advance Tax Must Transition to GST Under TNGST Act, 2017, Court Rules for Purposive Section 140 Interpretation.

April 25, 2024

Case Laws     GST     HC

Transitional credit - Unutilized amount of Advanced VAT paid - The court found that if the amount of advance tax paid under the VAT regime remained unutilized, it should be allowed to transition to the GST regime u/s 140 of the TNGST Act, 2017. This section clearly allows the transitioning of unutilized VAT and Entry Tax. Citing decisions from the Telangana and Madras High Courts, the judge supported a purposive interpretation of Section 140, which should extend to advance tax paid and unutilized under the previous tax regime.

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