Tax for which ITC is claimed Reflected in Form GSTR 2A: Kerala HC quashes Assessment Order [Read Order]

The Kerala High Court quashed assessment order on reflection of tax for which Input Tax Credit (ITC) was claimed in the Form GSTR2A.

The instant writ petition has been filed impugning the assessment order and recovery notice. The petitioner’s input tax credit for an amount of Rs.1,10769/- (SGST + CGST), has been denied on the ground that there is mismatch in GSTR 2A and GSTR 3B.

In reply to the show cause notice, writ petitioner/assessee, Geetha Agencies, had submitted that the petitioner had claimed the input tax as specified in GSTR-3B, based on valid invoices available with them. Petitioner also submitted that certain suppliers while uploading the data in GSTR-1, due to certain technical problem in the website, the data was uploaded as ‘0’ tax items.

The reply submitted by the petitioner/assessee was not found convincing and satisfactory to drop the proceedings and GST DRC-01A was issued to the petitioner. Thereafter, notice under Section 73 of the State Goods and Services Tax Act, 2017 was issued and the assessment order came to be passed for an amount of Rs. 3,61,304/-, which would include denied input tax to an extent of Rs.1,62,526/- + interest at 79.5% Rs.1,78,778/- and penalty of Rs.20,000/-. For realisation of the said amount, revenue recovery notice has been issued.

The Counsel for the petitioner submitted that the supplier/dealer has remitted the tax collected from the petitioner for inward supply, with some delay. There is no difference between the GSTR 3B, on the basis of which the petitioner claimed the input tax credit and the GSTR 2A, reflecting the tax paid by the supplier/dealer.

In the present case, the counsel for the petitioner submitted that this is not a case of nonpayment of tax by supplier dealer. In fact the tax was collected by the supplier/dealer from the petitioner, for which he has claimed the input tax credit, is reflected in the form GSTR 2A.

A Single Judge Bench of Justice Dinesh Kumar Singh observed that “Considering the said aspect of the matter that as per the stand of the petitioner/assessee, the tax for which the petitioner claimed input tax credit is reflected in Form GSTR 2A, though with some delay, the claim of the petitioner for input tax credit which has been denied in the assessment order does not appear to be correct.”

To Read the full text of the Order CLICK HERE

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