ITC claimed after Deadline Prescribed u/s 16(4): Madras HC Orders Reassessment of ITC Claims Considering s. 16(5) [Read Order]

The Madras High Court sets aside GST ITC disallowance under Section 16( 4 ) of the Goods and Service Tax Act, 2017 for belated filings, owing to S.16( 5 ) insertion.

In this case, the writ petition had been filed challenging the assessment order for the period 2018-2019, stating that the input tax credit ( ITC ) was disallowed only on the ground that claims were lodged beyond the period prescribed under Section 16(4) of the GST Act, 2017.

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It was submitted by the petitioner that an amendment was made into  GST Acts and that Section 16(5) had been inserted in  Section 118 of the Finance (No. 2) ACT, 2024, which states that ‘the registered person shall be entitled to take the input tax credit in any return under section 39 which is filed up to the thirtieth day of November 2021.’

It was submitted by the counsel on behalf of the petitioner that, due to the recent amendment, the reasons cited in the impugned assessment order may no longer hold, requiring a fresh assessment in line with the Finance (No. 2) Act, 2024.

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The High Court of Madras set aside the impugned order which was passed by the respondent on 22.04.2024.

The bench directed the adjudicating authority to redo the assessment by considering the amendment in the Finance (No. 2) ACT, 2024.

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The bench, comprising of Justice Mohammed Shaffiq, held that the petitioner can subject their objection through a reply within a period of three weeks from the date of receipt of a copy of this order along with the amendment and other details.

The bench also observed that “ if reply is filed by the petitioner, the same shall be considered and orders shall be passed, after affording reasonable opportunity of personal hearing to the petitioner. If such reply is not filed within the prescribed period, i.e., three weeks from the date of receipt of a copy of this order, the impugned order shall stand revived.”

To Read the full text of the Order CLICK HERE

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