Affluence Advisory
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M/S M.TRADE LINKS 9 Ors. v. Union of India Ors. [WP (C) No. 31559 of 2019] The Honble Kerala High Court in this judgment has clubbed multiple writ petitions dealing with the same matter, i.e., challenging Section 16(2)(c) and Section 16(4) of the CGST Act, 2017. In this case, the HC has disc
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FAQ :
The judgement primarily concerns the validity of Sections 16(2)(c) and 16(4) of the CGST Act, 2017, and the nature of input tax credit claims under the GST regime.
A taxing statute is constitutional if the legislature is competent to impose it, it serves a public purpose, and it does not violate fundamental rights guaranteed by Part III of the Constitution.
No, the claim to input tax credit is not an absolute right. It is an entitlement that is subject to the conditions and restrictions outlined in the GST Act and its rules.
These sections are crucial for the effective functioning of the GST law by preventing revenue losses to originating states when suppliers default on tax payments and by setting time limits for availing ITC, thus ensuring timely tax collection.
The Kerala High Court rejected the challenges to the constitutional validity of Section 16(2)(c) and Section 16(4) of the CGST Act, finding them to be constitutionally sound.
For the period before 1st January 2022, petitioners were granted liberty to claim ITC benefits by referencing Circular No. 183/15/2022-GST and Circular No. 193/05/2023-GST, with the appropriate authority to examine and process these claims.
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