Grounds of Writ-The Petitioner has filed the Writ Petition challenging the validity of Rule 36(4) of the Central Goods and Services Tax (CGST) Rules,2017. It is contended that the said sub-rule imposes unwarranted restrictions on the availment of Input Tax Credit (ITC) and is inconsistent with the parent legislation, particularly Section 43A of the GST Act, 2017, which has not been notified. The Petitioner further argues that the rule violates Article 14 of the Constitution of India and is ultra vires both the CGST Act and the Tamil Nadu Goods and Services Tax (TNGST) Act.
Order-The Court has dismissed the Writ Petitions and upheld the validity of Rule 36(4) of the CGST Rules.2017. It held that the impugned provision falls within the scope of the Goods and Services Tax (GST) Act and functions as a regulatory measure intended to curb fraudulent availment of Input Tax Credit (ITC) by unscrupulous taxpayers. The Court further observed that Rule 36(4) is neither ultra vires nor violative of Article 14 of the Constitution of India.
GST Case Law L & T Geostructur LLP versus Union of India
Citation-2025 TAXONATION 1257 (MADRAS)
Authors-Bhogavalli Mallikarjuna Gupta & Siddharth Surana
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