Case Summary
Case Title: Amit Jasrasaria v. Union of India & Ors.
Court: Gauhati High Court
Petition No.: WP(C)/2628/2024
Date of Judgment: 07.08.2025
Category of Dispute: Input Tax Credit (ITC) – Time limit under Section 16(4) CGST Act
Relevant Sections: Section 16(4), Section 16(5), Section 16(6) of CGST Act, 2017; Section 39; Section 29 & 30; Notification No. 17/2024-Central Tax dated 27.09.2024.
Facts (Paras 2–4)
The petitioner, representing M/s Nathmal Jugal Kishore, challenged rejection of Input Tax Credit (ITC) worth ₹79,05,895 for FY 2018–19. The rejection order dated 26.04.2024 was based on the ground that the GSTR-3B return was filed on 23.10.2019, after the due date of 20.10.2019, thus hit by Section 16(4) CGST Act. The Department applied strict limitation to deny ITC.
Questions Before the Court
Whether ITC for FY 2018–19 can be denied merely for late filing of GSTR-3B, despite retrospective amendments introduced by Finance (No.2) Act, 2024, granting extended time to avail ITC for earlier financial years?
Observations (Paras 5–10)
The Court examined the Finance (No.2) Act, 2024, which inserted Section 16(5) and 16(6) with retrospective effect from 01.07.2017. These provisions allowed availment of ITC relating to FY 2017–18 to 2020–21 in any return filed up to 30.11.2021. The amendment was notified vide Notification No. 17/2024-Central Tax.
The Court noted that the retrospective relaxation overrides Section 16(4). Hence, rejection of ITC on the basis of the earlier time bar was unsustainable. Importantly, the Department’s counsel conceded that the retrospective amendments were already in effect.
Judgment (Paras 11–15)
The High Court set aside both the rejection order dated 26.04.2024 and the demand-cum-show cause notice dated 27.12.2023, holding them redundant in light of Section 16(5). The matter was remanded to the Assistant Commissioner, Dibrugarh Division, for fresh proceedings and issuance of a new notice, with directions to grant the petitioner an opportunity of hearing.
Cases Referred – Summary Table
| Case Referred | Issue | Verdict |
|---|---|---|
| Present case only (no external citations) | ITC denial on limitation under Section 16(4) | Court held retrospective amendment under Section 16(5) validates ITC claims up to Nov 2021, setting aside rejection order and demand notice. |
Between Fine Lines (Trade Takeaway)
This judgment is a relief to taxpayers who had missed original deadlines for availing ITC for FY 2017–18 to 2020–21. With retrospective relaxation under Section 16(5), ITC claims made up to 30th November 2021 cannot be denied merely on timing grounds. Businesses facing past demands should examine whether their ITC claims are protected by this retrospective amendment before proceeding further.
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 CGST Act validates ITC claims filed up to November 2021, setting aside ITC denial for FY 2018–19.){kind=link}