GST ITC Denied for Late Filing of GSTR-3B: Calcutta HC Orders Reconsideration in Light of Section 16(5) [Read Order]

The Calcutta High Court has ordered reconsideration of Input Tax Credit ( ITC ) in the light of new Section 16(5) of the Goods and Services Tax ( GST ) which was disallowed on the ground that the petitioner had filed the GSTR-3B return belatedly.

The case arose from a challenge to an adjudication order dated 17th August 2024, passed under Section 73 of the Act, where the petitioner's ITC claims were rejected solely on the ground that the GSTR-3B return mandated under Section 39 had not been filed within the prescribed time.

The Court decided that the matter deserved new examination in light of the new provision, noting that the GSTR-3B reports for the pertinent tax periods from August 2019 to March 2020 were filed on or before January 14, 2021.

Consequently, the Justice Raja Basu Choudhary set aside the impugned adjudication order and remanded the matter back to the proper officer to reconsider the petitioner’s claim for ITC, specifically with reference to Section 16(5) of the Act.

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It ruled that “Prima facie upon going through the materials on record since it appears that the petitioner seeks the benefit of Section 16(5), having regard to the insertion of this Section in the GST Act and noting that the actual date of submission of the return concerning tax period August, 2019 to March, 2020 is not later than 14th January, 2021, I am of the view that the matter should be remanded back to the proper officer for the petitioner to avail the benefit of Section 16(5) of the said Act.”

With these directions, the writ petition was disposed of, with liberty to the petitioner to obtain a certified copy of the order by following due formalities.

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