Judgment Update | Supreme Court stays Delhi High Court judgment on TRAN-1

by | Jun 20, 2020 | Insight

Recently, the Supreme Court had stayed the order of Delhi High Court in the case of Brand Equity Treaties Limited v. UOI, 2020-VIL-196-DEL (update shared vide the trail mail) where the time limit for carry forward of transitional credit under GST regime was extended to 3 years from the date of implementation of GST viz. June 30, 2020.

NITYA Comments:

 The issue of transitional credit is becoming vexed and has reached the doors of the Supreme Court. The Apex Court will finally decide fate of this issue. Despite the above, there are various High Court judgments allowing transition of credit (being vested right despite procedural defects) still in effect and not stayed by Supreme Court. Hence, taxpayers should file manual TRAN-1 by June 30, 2020 for missed credits (if any) to keep this issue alive.