Discrediting the credit: A discussion on the transition of credit of cesses under GST
The transitional provisions under Goods and Services Tax (‘GST’) regime have been the quintessential problem child since inception, perplexing taxpayers, government, and Courts alike. The government compounded the problems by issuing multiple FAQs and Circulars, and even amending the provisions. On the contrary, the Courts exercised little patience and have exhibited a pro-assessee trend till date.
The Madras High Court also followed this trend in its recent decision in the case of Sutherland Global Services Private Limited v. UOI, and allowed transition of Cenvat credit of erstwhile cesses, viz. Education Cess, Secondary & Higher Education Cess and Krishi Kalyan Cess in the GST regime.
Through this article, our Managing Partner, Mr. Puneet Bansal and Associate, Ms. Sneha Ghosh has critically examined this decision.
Please find the attached our article titled ” Discrediting the credit: A discussion on the transition of credit of cesses under GST “ on the issue.