INTRODUCTION
Goods
and Services Tax (GST) being a value-added tax, Input Tax Credit (ITC)
is a very pivotal link in its design. Any denial in respect of Input Tax
Credit results in tax on tax and affect the product pricing and
operating cash flow. Going by the justification provided in the First
Discussion Paper on GST in India published by the Empowered Committee of
State Financial Ministers on 10th November, 2009, regarding the
introduction of GST1, there is no dispute that the essence of GST law
lies in improvising ways to reduce the cascading effect of taxes by
increasing the possibility of set-off by maintaining a continuous chain
of set-off from the point of origination to the point of final sale to
the customer. Therefore, the set-off or ITC-related provisions are to be
interpreted keeping the said remedy in mind.The GST laws put
various restrictions on the entitlement of input tax credits. One such
restriction is the time limit within which the ITC can be taken. This
article deals with the possible interpretational disputes regarding
section 16(4) of the CGST Act.
OVERVIEW OF THE ITC PROVISIONS IN GENERAL
Chapter V of the CGST Act deals with Input Tax Credits. Section 16 of the CGST Act deals with the eligibility and conditions for
taking input tax cred
