The Central Board of Indirect Taxes (“CBIC”) vide Notification No 43/2020 – Central Tax dated 16.05.2020 notified the retrospective amendment to Section 140 of Central Goods and Services Tax Act, 2017 (“CGST Act“). Through this notification, the Central Government hereby appoints the 18th day of May 2020, as the date on which the provisions of section 128 of the Finance Act, 2020 shall come into force. This notification empowered section 140 of the CGST Act to prescribe the time in which the assessee can claim his transitional credit.

Earlier the Hon’ble Delhi High Court on 05.05.2020 in the matter of Brand Equity Treaties Limited vs The Union of India & Ors. held that the time limit for claiming input tax credit is a directory and not mandatory in nature and there will be no renunciation of rights of claiming input tax credit if the assessee failed to claim the same within 90 days in his TRAN – 1. The Hon’ble High Court also held that as there is no specific provision under the CGST Act, therefore, limitation of 3 years under Limitation Act will be applicable. It is vital to note that through this judgement the Hon’ble High Court directed the department to allow all assessee to avail such input tax credit till 30.06.2020.

As section 128 of the Finance Act, 2020 will be in force from 18.05.2020 the aforesaid judgement will lose its importance and in other words, we can say that the said notification will annul the judgement passed by the Hon’ble Delhi High Court