Win for Ford India: Supreme Court Allows Transitional Credit Even If Not Reflected in Electronic Credit Ledger on Refund Date

In a win for Ford India, the Supreme Court has allowed "transitional credit" even if not reflected in the electronic credit ledger on the refund date. Transitional credit allows businesses to carry forward pre-GST tax credits into the GST regime. This significant ruling provides relief to businesses that faced technical issues in reflecting their legitimate credits in the electronic ledger. The Supreme Court's decision acknowledges the intent behind transitional provisions, ensuring that genuine tax credits are not denied due to procedural or technical glitches, promoting fairness in tax transitions.