In a significant ruling, the Kerala High Court held that the time limit for furnishing Goods and Services Tax ( GST ) returns for September month to be treated as 30th November in each financial year with effect from 1.07.2017. Further viewed that in respect of the petitioners who had filed their returns for September on or before 30th November, their claim for ITC should be processed, if they are otherwise eligible for ITC.
A batch of Writ petitions was filed before the High Court, the respective supplier had remitted the tax ( GST ) but not reflected in their return GSTR due to some technical reasons. Another set of petitioners are those who have received the goods or services and have valid tax invoices, proof of payment of the value of goods along with the GST component to the respective suppliers, but the respective suppliers had not remitted the GST on the supply made by them to the petitioners.
The third set of petitioners are those who have the invoice but have no clear proof of payment of consideration and tax towards the inward supply and might not have received goods in their possession. Common questions of facts and law are involved in these writ petitions.
The controversy has been decided by judgment of even date. The issue was that the Government had realized the difficulty in the initial rollout of the GST regime under the CGST/SGST Act and considered that GSTR 2A was not available initially in the Finance years 2017-2018 and 2018-2019 during the implementation of GST. To resolve all bona fide claims and mistakes, Circular No.183/15/2022- GST dated 27.12.2022 and Circular No. 193/05/2023- GST dated 17.07.2023 have been issued. Circulars cover the period from the introduction of GST till Section 16(2) (aa) was introduced with effect from 01.01.2022.
The ITC can be availed by the recipient for the bona fide scenarios listed in those Circulars on submitting proof of payment to the Government by the supplier. Therefore, if, during the pendency of these writ petitions, the petitioners who could have got the benefits of these Circulars and could not avail of the benefits within the time limit prescribed, may approach the appropriate GST authority within thirty days from today to avail the benefit of the aforesaid Circulars, if the same is/apply to their case. The GST authorities will examine the claim of the individual dealer by applying the provisions of the Circulars, and it will grant applicable relief to eligible dealers.
Before the amendment in Section 39 by the Finance Act 2022, the date for furnishing the return under Section 39 was 30th September. Considering the difficulties in the initial stage of the implementation of the GST regime, its understanding, and compliance, the Legislature effected the amendment and extended the time for filing the return for September to 30th November in each succeeding Financial Year.
It was pointed out that the claim was made before 30th November of the succeeding Financial Year, but the relevant period was 20th October, which was the extended date for furnishing the return under Section 39 for September. Therefore, if a person has furnished the return for September till 30th November, their claim should also be considered and processed and should not be rejected if the dealer did not furnish the return for September on or before 20th October.
In light of precedent, the Single bench of Justice Dinesh Kumar Singh held that the time limit for furnishing the return for September is to be treated as 30th November in each financial year with effect from 01.07.2017, in respect of the petitioners who had filed their returns for September on or before 30th November, and their claim for ITC should be processed, if they are otherwise eligible for ITC.
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