Gujarat High Court Holds Refund of Transitional VAT Credit Barred Under Section 142(3) of GST Acts; Allows Re-Credit to Electronic Credit Ledger
The Gujarat High Court has ruled that refund of transitional VAT credit carried forward into the GST regime is expressly barred by the second proviso to Section 142(3) of the GST Acts. However, the Court directed that such credit, if rejected for refund, must be re-credited to the taxpayer’s Electronic Credit Ledger for utilization, subject to statutory verification.
