Credit of unadjusted TDS under VAT can be transitioned into GST regime

Last updated: 06 February 2023

Court :
Jharkhand High Court

Brief :
The Hon'ble Jharkhand High Court in M/s Subhash Singh Choudhary v. State of Jharkhand [W.P.(T) No. 2404 of 2020, dated January 9, 2023] quashed the order denying migration of unadjusted Tax Deducted at Source ("TDS") amount available under the Value Added Tax ("VAT") regime. Held that the assessee is entitled for migration of the TDS amount in terms of Section 140(1) of the Central Goods and Services Tax Act, 2017 ("the CGST Act"). Further held that, restriction on Input Tax Credit ("ITC") only applies if there is an express prohibition under the CGST Act. Any contrary interpretation would have an effect of nullifying and/or setting at naught the real object of the transitional provision.

Citation :
W.P.(T) No. 2404 of 2020, dated January 9, 2023