Section 16 5 saves the ITC

The Andhra Pradesh High Court, by its judgment dated 6 August 2026, allowed the writ petition of M/s H.R. Constructions and set aside the assessment order denying ITC under Section 16(4). The Court held that in view of the retrospective benefit introduced through Section 16(5), the petitioner was entitled to avail the input tax credit, rendering the earlier assessment unsustainable.