Page 50 - GSTL_18th June 2020_Vol 37_Part 3

J84 GST LAW TIMES [ Vol. 37
the other, due to the lockdown, we are not getting payments from our clients for
services provided to them”, said Amit Bajaj, President, DACAAI.
The industry is having its worst time with no cash flows during the
lockdown, but the Government’s policies are further accentuating its woes. Dur-
ing the pandemic, the sector had been the first casualty, with aircraft being
grounded across the world. This is affecting the domestic air cargo service pro-
viders, pan India, he said in a release.
“As per the present GST law, we have already paid 18 per cent GST on
the invoices raised by us, but cases of bad debts have been increasing. This puts
us in double jeopardy and our members are suffering huge losses,” he said.
The association urged the Government and the GST Council that dues
paid on the bad debts should be re-credited back into the agents’ account. Either
the Government should consider charging GST only after the payments are real-
ised, or refund such GST back to the agents, he said.
Initially, when the GST was introduced, it was assured by the Govern-
ment that if debtors do not pay within 90 days, they will reverse the GST credit
and also take action against such defaulters, which will hasten the payments cy-
cle. This has not been implemented by the GST Council so far and needs to be
activated by the GST administration, he said.
[Source : http://www.thehindubusinessline.com, dated 10-6-2020]

Dispute on time-limit for transitional credit : FinMin files
petition in SC

Delhi HC had ruled that assessees can file claims till June 30
The dispute on time-limit relating to transitional arrangements for Input
Tax Credit (ITC) under the Goods & Services Tax (GST) has reached the Apex
Court with the Finance Ministry appealing against a Delhi High Court’s ruling
on the issue.
The High Court, in its ruling on May 5, said the time-limit for transition-
al credit is only ‘directory’ and not ‘mandatory’. For the first time in the GST re-
gime, a Court ruling was made applicable to not only the petitioner but all the
affected assessees who are not even party to the petition. This would mean all
assessees can claim pending transitional credit (technically known as ITC) till
June 30.
Meanwhile, in order to protect its revenue, the Finance Ministry notified
a retrospective amendment in the Central Transitional credit refers to use of tax
credit accumulated up to June 30, 2017.
Central Goods and Services Tax Act (CGST Act, 2017) on May 17. Ac-
cordingly, it has formally been made effective to prescribe the time-limit and the
manner for availing ITC against certain unavailed credit under the existing law.
This amendment shall take effect retrospectively from July 1, 2017. The fine print
of the amendment makes it clear that the power to prescribe a timeline now em-
anates from a law enacted by Parliament and not from the subordinate legisla-
tion, that is rules. Since the High Court order focusses on rule, the notification
will impact the claim settlement for a number of businesses except the petitioners
in the matter decided on May 5. And now, the Ministry has filed a Special Leave
Petition (SLP) in the Apex Court. The petition questioned whether the High
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