ITC Claimed cannot be denied due to mismatch between GSTR-2A and GSTR-3B: Kerala HC Sets aside Order against Philips Auto Agencies [Read Order]

The Kerala High Court set aside the order denying the claim of Input Tax Credit ( ITC ) by Philips Auto Agencies due to a mismatch between GSTR-2A and GSTR-3B. The court directed the first respondent to consider the claim of the petitioner keeping in mind in terms of the Circular dated 27.12.2022 and after affording an opportunity of hearing to the petitioner.

M/S Philips Auto Agencies ( India ) Pvt Ltd, the petitioner has approached the Court being aggrieved by the fact that he has been denied Input Tax Credit in the assessment of the Goods and Services Tax Act for the year 2018-19.

The petitioner submitted that the denial of the Input Tax Credit was on account of a mismatch between GSTR-2A and GSTR3B. It was submitted that GSTR-2A was introduced only in September 2018 and therefore, the Input Tax Credit could not have been denied on account of such mismatch. It was also pointed out that, in terms of Section 73(3) of the Goods and Services Tax Act, 2017, the statement of mismatch should have been provided to the assessee and this has not been done. It is submitted that, if such a statement had been provided, the petitioner would have been able to substantiate its claim for Input Tax Credit in terms of Circular No183/15/2022-GST dated 27.12.2022.

Justice Gopinath P viewed that the claim of the petitioner can be directed to be reconsidered by the Assessing Authority also having regard to the provisions of the Circular dated 27.12.2022 referred to above. If the petitioner requests a statement in terms of the provisions contained in Section 73(3) of the Goods and Services Tax Act, the same should also be provided to him. 

The court disposed of the writ petition by setting aside the order of assessment of the petitioner for the year 2018-19 and remitting the matter for a fresh consideration of the first respondent. The first respondent shall consider the claim of the petitioner as directed above also keeping in mind in terms of the Circular dated 27.12.2022 and after affording an opportunity of hearing to the petitioner. The petitioner shall appear before the first respondent at 11.00 a.m. on 20.03.2024 and thereafter, the matter shall be reconsidered as directed above. 

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