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Should you reverse the ITC on unsold flats in a real estate project completed before 01-04-2019? The amendment to R42 effective from 01-04-2019 requiring ITC reversal regarding unsold flats - can it be applied retrospectively? In a recent case, Hon Jharkhand HC, in Tata Steel Limited, addressed the question of applying rules before the effective date.

The court highlighted, "The restriction on the distribution of credit to units receiving the particular service was introduced by the Finance Bill, 2012, effective from April 1, 2012. There was no such restriction before this date." This underlines the established principle of interpreting statutory provisions, which is crucial for assessments.

In a similar scenario under Service Tax, the Guj HC ruled that no reversal was necessary as no provision existed at the time. 

Have you encountered other situations where new laws were superimposed on periods when they weren't in effect?