With retrospective amendment of CGST the centre got more expanded time for the disbursal of input tax credit. In the amendment of CGST which is related to the transitional arrangements and is more effective for input tax credit. So the expanded time limitation helps to avail the pending input tax credit under the existing law. This amendment is to support the problems for everyone excluding the ruling petitioner for claiming the pending input tax credit or ITC till the date of June 30. According to the updated notification of the amendment the provisions of section 128 of said Act will come into force
from May 18, 2020. It is very clear in the amendment that the law is enacted from the Parliament but not from sub-ordinate legislation. Except the petitioners the notification allows to settle the claim for several business and this will have a effective impacts as the Delhi High courts focuses which are on rule. The claim of input tax credit is favouring the tax payers can loosen the gripped pact of the defect which are caused due to this retrospective amendment of Finance act, 2020. This amendment may have a good impact on the stressed revenue sectors, and after notifying the amendment the tax authorities has fixed their strict focus on the transitional credit. The tax credit calculated for the last of June 30, 2017 of the central excise and service tax regime is referred as input tax credit. But there are some conditions and limitations also. One can get the credit if the IT returns were filed for the last six months according to the previous regime (from January 2017- June 2017) including VAT, excise and service tax. The Form
TRAN I which should be filed by the person registered under GST and old regime and also to be filed by 27th December 2017and the further procedure of input tax credit will be extended till March 31, 2019. The court has mandated the amendment and the strict directives should be followed for claiming the input tax credit till June 30.
“This amendment forwarded by the parliament will help the all business sectors to avail the transitional credit in the era of lockdown when the industries of India needs more support economically. The centre has taken the proactive decisions which can become the pillars of Indian economy” said Mahesh Somani, Vice President- National Association of Realtors, Indian Chairman-National RERA Committee, NAR INDIA.
By LNN (Liyaans News Network)