Delhi High Court allowed to file Tran-1 but CBIC amended Law to negate the benefit

Delhi High Court allows taxpayers to claim Transitional Credit

Hon’ble Delhi High Court in case of Brand Equity Treaties Limited Vs Union of Indiahas held that period of 90 days for claiming input tax credit in TRAN-1 is directory and therefore, period of limitation of 3 years under the Limitation Act would apply.  ️The Court has directed the Department to allow all assessees to claim input tax credit in TRAN-1 by 30.6.2020.  The direction would apply to all those who could not file TRAN-1 and claim input tax credit. ️The court has further directed that it should be advertised that all taxpayers who have not filed TRAN 1 can do so by 30.6.2020. The judgment has been made applicable to all irrespective of whether the taxpayer has approached the court or not.

Thus direction would apply to all those who could not file TRAN-1 and claim input tax credit.

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The court has further directed that it should be advertised that all taxpayers who have not filed TRAN 1 can do so by 30.6.2020. The judgment has been made applicable to all irrespective of whether the taxpayer has approached the court or not.

Retrospective amendment to Section 140 to negate benefit granted by High court

Now the Central Board of Indirect Taxes and Customs (CBIC) notified retrospective amendments to section 140 of CGST Act, granting it the power to prescribe a time limit for availing transitioning credit the credit from pre-goods and services tax (GST) regime which was moved to the GST regime as an input tax credit from July 1, 2017. “The Central Government hereby appoints the 18th day of May 2020, as the date on which the provisions of Section 128 of the Finance Act, 2020, shall come into force,” the notification issued on Saturday said.

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The notification could well negate the benefit granted by the Delhi High Court to all assessees of availing pending input tax credit till June 30, 2020, through an order passed on May 5.