Gujarat High Court strikes down GST provision as unconstitutional
The Gujarat High Court has struck down a provision of the goods and services tax (GST) Act which prohibited ‘first stage dealers from transitioning excise duty credit
on goods procured more than a year before the rollout of the new indirect tax regime on July 1, 2017. The court termed the sub-section concerned as unconstitutional as
it violated the vested right of the petitioner. Under the GST, businesses are allowed to claim credit of taxes paid on goods bought within 12 months of the appointed
date for GST or after July 1, 2016. However, the court said under the Central Excise Act and the CENVAT credit rules, there was no such restriction on availing of
credit for goods purchased prior to the one-year period.
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