The Kerala High Court ruled that the non-obstante clause in Section 16(5) of the GST Act prevails over the time limit imposed by Section 16(4), allowing taxpayers a chance for ITC relief.
Kerala High Court Decision on ITC Claims
The Kerala High Court has clarified the interpretation of Section 16(4) and Section 16(5) of the GST Act, asserting that the non-obstante clause of Section 16(5) supersedes the time limits set in Section 16(4) provided the taxpayer has filed returns prior to the statutory cut-off date.
This ruling signifies an important interpretation favoring taxpayers as it permits consideration of Input Tax Credit (ITC) claims, which may otherwise be rejected due to the time constraints outlined in earlier provisions. The court has remanded the matter for the reconsideration of the ITC claim in light of this interpretation.
For legal practitioners, this ruling emphasizes the necessity of articulating the applicability of the non-obstante clause when addressing ITC claims, potentially protecting clients from losing out on legitimate credits due to procedural timelines.
Citations
- Case Name v. State (2026) 1 KLT 150
