In a recent ruling, the Kerala High Court ruled that Input Tax Credit (ITC) cannot be denied solely based on the discrepancy between GSTR 2A and GSTR 3B. The High Court remitted the matter back for the evidence examination.
Mina Bazar Railway Station, the petitioner, has lodged a writ petition challenging both the assessment order and the recovery notice. Upon examination of the assessment order that is under dispute in this current writ petition, it becomes evident that the sole basis cited for the petitioner’s utilization of input tax credit is the variance between GSTR 2A and GSTR 3B.
The bench of Dinesh Kumar Singh relied on the decision pronounced by the same court in the case of Diya Agencies v. The State Tax Officer has held that the “input tax credit of the assessee under the GST regime cannot be denied merely on the difference of GSTR 2A and 3B.”
“Merely on the ground that in Form GSTR-2A the said tax is not reflected should not be a sufficient ground to deny the assessee the claim of the input tax credit” stated the Kerala High Court in the Diya Agencies v. The State Tax Officer.
The High Court, while allowing the writ petition, remitted the matter back to the file of the Assessing Authority to examine the evidence of the petitioner irrespective of the Form GSTR 2A for petitioner’s claim of the input tax credit.
Furthermore, it was instructed that, subsequent to a thorough review of the evidence presented by the petitioner/assessee, the Assessing Authority should issue new orders in compliance with applicable regulations. The petitioner has been specifically advised to attend a meeting with the Assessing Officer on October 3, 2023, at 11:00 a.m., along with all supporting evidence to substantiate their input tax credit claim.
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