ITC Cannot Be Denied Based Solely on GSTR 2A and GSTR 3B Discrepancies: Kerala HC directs Readjudication [Read Order]

ITC - GSTR 2A - GSTR 3B Discrepancies - Kerala HC directs Readjudication - Kerala High Court - taxscan

The Kerala High Court, based on the Calcutta High Court’s ruling in the case of Suncraft Energy Private Limited v. The Assistant Commissioner, State Tax, Ballygunge Charge, has ruled that, in the GST regime, the assessee cannot be refused the Input Tax Credit simply due to variations between GSTR 2A and GSTR 3B.

The writ petition challenged an assessment order and a recovery notice issued on December 28, 2021, and September 2, 2023, respectively. The petitioner has asserted their right to Input Tax Credit (ITC) amounting to Rs. 2,58,116/-, including interest and penalty, making the total sum approximately Rs. 4,58,156/-.

From the perusal of the Assessment Order impugned in the present writ petition, it appeared that the only ground on which the petitioner has been said to have availed the input tax credit is the difference between GSTR 2A and GSTR 3B.

Relying on the judgment of the Supreme Court in the case of The State of Karnataka v. M/s Ecom Gill Coffee Trading Private Limited,  the bench of Justice Dinesh Kumar Singh allowed the writ petition and remitted back to the file of the Assessing Authority/1st respondent to examine the evidence of the petitioner irrespective of the Form GSTR 2A for the petitioner’s claim for the input tax credit.

Further, directed that the Assessing Authority to issue new orders in compliance with the applicable regulations after examining the submissions. The petitioner is also instructed to attend a meeting with the Assessing Officer on October 3, 2023, at 11:00 a.m., and should bring all supporting evidence for their input tax credit claim.

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