India: The GST Appellate Tribunal ruled that GST authorities cannot challenge undisputed pre-GST credits under Section 74 of the CGST Act. The decision confirms that transitional credits from CENVAT, Krishi Kalyan Cess and VAT cannot be denied without specific findings, and Section 74 penalties are unsustainable.
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Key Takeaways
As of 31 July 2026, the GST Appellate Tribunal ruled that GST authorities cannot invoke Section 74 to challenge undisputed pre-GST credits for GST-registered businesses.
As of 31 July 2026, the Tribunal held that denial of transitioned KKC credit under Section 140 is not permissible for GST-registered businesses.
As of 31 July 2026, the Tribunal ruled that denial of VAT credit under Section 140(6) is unsustainable for GST-registered businesses.
As of 31 July 2026, the Tribunal held that a 100% penalty under Section 74 is unjustified for GST-registered businesses.
Primary source
Read the full article at TaxOThis summary was published on VATfaqs.com on 3 August 2026. It relates to VAT developments in India. The original source is TaxO.
