GST was introduced vide 101st Constitutional Amendment Act to provide Center and State Government, the power to levy GST on supply of goods under Article 246A. The States lost power to assess VAT on sale of goods and hence, VAT laws were to be aligned till 16.09.2017. 

 Thus, VAT limitation period could have been amended within above time; however, few State Governments have enhanced limitation period, beyond above time. Various High Courts [Kerala, Gujarat and Telangana] held that States lost their power to administer VAT after above time. However, Bombay High Court observed that States gained power to administer tax on local supply of goods under Article 246A and hence, VAT amendment was held valid. 

 However, Article 246A empowers States only for administering GST and not VAT. Hence, amendment in limitation period after 16.09.2017 may not be legally sustainable.

Audio Source: An article published on the LKS website in January 2023
Value addition’ in Value Addition Tax: Extension of limitation period | Lakshmikumaran & Sridharan Attorneys (lakshmisri.com)
Author: Rinku Panbude