Transitional Credit under GST Law

Central Government (CG) has on 16th May 2020 notified an important amendment in CGST Act empowering CG to prescribe a time limit for availing transitional credit. Such an amendment is applicable retrospectively from 1st July 2017.

Recent Delhi High Court judgment in the case of Brand Equity Limited held that Transitional Credit can be claimed by an assessee as a civil right within 3 years of 1st July 2017 i.e. 30th June 2020. One of the reasons for Delhi High Court to rule in favour of the assessee was absence of any time limitation under the CGST Act restricting availment of transitional credit upto a certain date.

The above amendment seems to be an attempt to overcome the effect of various rulings including the recent Delhi High Court judgment.


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