Taxpayers denied pre-GST tax credits
The Centre has imposed a restriction on the time limit to claim transitional credit. On May 5, in a landmark judgement that brought much relief to taxpayers, the Delhi High Court allowed all taxpayers to claim transitional credit accumulated before the implementation of GST by June 30, 2020.
This judgement extended the period for claiming input credit from 90 days to 3 years and also allowed all taxpayers to take benefits of the order. The HC verdict, if also upheld by the Supreme Court, could have meant a huge revenue loss to the Central government. But the Centre will be amending Section 140 of the CGST Act and nullify the order issued by the Delhi High Court. Under this amendment, taxpayers will be required to litigate separately to avail any credit disallowed due to technical glitches or errors.
For more information on GST compliance, visit https://www.avalara.com/in/en/index.html
To Know more about Avalara GST Solution please click here –