In a significant development, the Supreme Court of India has taken up the challenge to the time limit imposed for availing Goods and Services Tax ( GST ) Input Tax Credit ( ITC ) under Section 16(4) of the Central Goods and Services Tax Act, 2017.
The case, Shanti Motors v. Union of India & Ors., questions the constitutional validity of the said provision, asserting that it infringes upon Articles 14, 19(1)(g), and 300A of the Constitution of India.
The Special Leave Petition ( SLP ) challenges the constitutional validity of Section 16(4) of the CGST Act, which sets a time limit for availing Input Tax Credit ( ITC ).
Read More: Section 16(4) of The GST Act – Why It May Never Be Struck Down
The petition contends that the provision is violative of fundamental rights enshrined in Articles 14, 19(1)(g) and 300A of the Constitution.
The Supreme Court has admitted the Special Leave Petitions and issued notices to the respondents, signaling the initiation of a thorough judicial examination of the issue. Alongside admitting the SLPs, the Supreme Court has issued notice on the interim reliefs as well.
Shanti Motors is represented by a formidable legal team, including Mr. Sujit Ghosh, Sr. Adv., Mr. Bimal Jain, Adv., Ms. Mannat Waraich, AOR, Mr. Ajinkya Tiwari, Adv., and Mr. Keshav Jatwani, Adv.
The next hearing for this critical case is scheduled for February 19, 2024.
Read Also: The Input Tax Credit Conundrum: Section 16(4) GST Act Decoded with Recent Judgements on ITC
This legal challenge has far-reaching implications for businesses and taxpayers affected by the time constraints on availing GST credit. Stay subscribed as more details are awaited by the professionals as well as business owners.
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