GST ITC Denial Without Considering Retrospective Relief u/s 16(5) Unjustified: Calcutta HC Remands Case

The Calcutta High Court has remanded a case back to the tax authorities, stating that the denial of GST Input Tax Credit (ITC) without considering retrospective relief under Section 16(5) is unjustified. Section 16(5) pertains to specific conditions or restrictions for availing ITC. The court's decision highlights the importance of applying all relevant legal provisions, including those with retrospective effect, when assessing ITC eligibility. This ruling offers significant relief to taxpayers, ensuring that their ITC claims are evaluated comprehensively, taking into account any beneficial amendments that apply retroactively, promoting fairness in ITC assessment and reducing arbitrary denials.