Summary
- High Court of Judicature at Madras bench of Chief Justice Manindra Mohan Shrivastava and Justice G. Arul Murugan in Reliance Jio Infocomm Ltd vs Union of India
- Whether Rule 39(1)(a) of the CGST Act, requiring ITC distribution by an ISD in the same month as the invoice date, is ultra vires and arbitrary.
- Court observed that the rule is valid and serves legitimate objectives of revenue protection and compliance.
- The requirement for same-month distribution is not arbitrary but necessary to maintain GST integrity and prevent revenue leakage.
- This judgment reinforces the procedural framework for ITC distribution under GST, impacting future compliance by ISDs.
Join the discussion ā sign up to comment, upvote, and save articles.