Supreme Court issues Notice in SLP challenging the constitutional validity of Section 16(4) of the CGST Act

Last updated: 05 January 2024

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Quick Summary

The Supreme Court of India has issued a notice in a Special Leave Petition concerning the constitutional validity of Section 16(4) of the CGST Act. This section denies Input Tax Credit (ITC) if an invoice or debit note is issued after the due date for furnishing returns. The Patna High Court had previously upheld this provision, but the Supreme Court will now consider the challenge. The case is listed for further hearing on February 5, 2024.

Court :
Supreme Court of India

Brief :
The Hon'ble Supreme Court of India heard the case of Mrityunjay Kumar v. Union of India [SLP (C) No. 28270 of 2023], wherein the Hon'ble Supreme Court vide order dated January 3, 2024, issued notice in Special Leave Petition filed against the judgement of the Hon'ble Patna High Court

Citation :
CWJC No. 9108 of 2021 dated September 8, 2023

The Hon'ble Supreme Court of India heard the case of Mrityunjay Kumar v. Union of India [SLP (C) No. 28270 of 2023], wherein the Hon'ble Supreme Court vide order dated January 3, 2024, issued notice in Special Leave Petition filed against the judgement of the Hon'ble Patna High Court in the case of Gobinda Construction v. Union of India and Others [CWJC No. 9108 of 2021 dated September 8, 2023], wherein the Hon'ble Patna High upheld the constitutional validity of Section 16(4) of the Central Goods and Services Tax Act, 2017 ("the CGST Act") / the Bihar Goods and Services Tax Act, 2017 ("the BGST Act"). Section 16(4) of the CGST Act / the BGST Act states that, Input Tax Credit would be denied in cases where any invoice or debit note is issued after the due date of furnishing returns.

The matter has been listed for further hearing on February 05, 2024.

FAQ :

The case challenges the constitutional validity of Section 16(4) of the CGST Act, which restricts Input Tax Credit for invoices issued after the return filing due date.

The Patna High Court upheld the constitutional validity of Section 16(4) of the CGST Act and the BGST Act in a previous ruling.

Section 16(4) of the CGST Act states that Input Tax Credit will not be allowed if an invoice or debit note is issued after the due date for furnishing returns.

No, the Supreme Court has only issued a notice and the matter is listed for further hearing on February 5, 2024.