By: Mukesh Butani (BMR Legal Advocates)
We are pleased to mail you an Opinion piece as weekend long-read on the subject. The issue on claim of GST input credit, particularly transitional credits, has been a source of anxiety for taxpayers. This coupled with conflicting High Court decisions and the Centre and State laws prohibiting such transitional input credits, is viewed as denial of an entitlement, striking to the core of the GST design. A recent decision of the Madras High Court, not surprisingly, aligning itself with the law, is dubbed as a legal declaration for such denial. We have argued that it is an opportune time for the law makers to reflect on the consequences of its impact and have made policy suggestions to review the law such that the foundational tenets of GST is maintained and that the GST Council as an all-pervasive repository of Constitutional authority intervene for course-correction.