Kerala HC sets aside GST ITC Denial for FY 2019-20 u/s 16(4), Directs to pass Fresh Orders in as per S. 16(5) [Read Order]
The high court directed the competent authority to issue fresh orders by specifically considering Section 16(5) and after providing the petitioner a proper opportunity of hearing.
![Kerala HC sets aside GST ITC Denial for FY 2019-20 u/s 16(4), Directs to pass Fresh Orders in as per S. 16(5) [Read Order]](https://images.taxscan.in/h-upload/2026/01/19/2120710-kerala-hc-sets-aside-gst-itc-denial-for-fy-2019-20-us-164-directs-to-pass-fresh-orders-in-as-per-s-165-taxscan.webp "Kerala HC sets aside GST ITC Denial for FY 2019-20 u/s 16(4), Directs to pass Fresh Orders in as per S. 16(5) [Read Order]")
The Kerala High Court has set aside the denial of Input Tax Credit (ITC ) under Goods and Services Tax ( GST ) for Financial Year 2019-20 by invoking Section 16(4). The court directed the department to reconsider the matter. M/s Sesame Technologies Pvt. Ltd approached the High Court challenging the denial of ITC through an order dated 10.06.2024. The petitioner, through...
The Kerala High Court has set aside the denial of Input Tax Credit (ITC ) under Goods and Services Tax ( GST ) for Financial Year 2019-20 by invoking Section 16(4). The court directed the department to reconsider the matter.
M/s Sesame Technologies Pvt. Ltd approached the High Court challenging the denial of ITC through an order dated 10.06.2024.
The petitioner, through its counsel, Adv. R. Jaikrishna argued that the credit was rejected solely due to the time restriction prescribed under Section 16(4) for FY 2019-20.
The petitioner further submitted that the GST Act, 2017 has relaxed the time limit by introducing Section 16(5). Thus, the restriction for the relevant financial year does not apply. Therefore the petitioner said that they should be granted the ITC benefit that had been disallowed.
Justice Gopinath P., accepted the limited relief sought and set aside order to the extent it denied ITC on account of Section 16(4).
The high court directed the competent authority to issue fresh orders by specifically considering Section 16(5) and after providing the petitioner a proper opportunity of hearing.
Section 16(5) states that :
“Notwithstanding anything contained in sub-section (4), in respect of an invoice or debit note for supply of goods or services or both pertaining to the Financial Years 2017-18, 2018-19, 2019-20 and 2020-21, the registered person shall be entitled to take input tax credit in any return under section 39 which is filed up to the thirtieth day of November, 2021.”
The bench also clarified that the reconsideration process shall be done within three months from the date of receipt of a certified copy of the judgment.
Furthermore, the bench stated that it had not considered the merits of the ITC claim itself, leaving the authority to make an independent decision in accordance with the law.
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