07/03/2024
Can the denial of an Input Tax Credit (ITC) claim be justified solely on the basis that it is not reflected in the GSTR-3B, despite its mention in GSTR-2A and GSTR-9?
A. Summary:
Hon’ble Madras High Court in case of M/s. Sri Shanmuga Hardwares Electricals (‘Petitioner’) held that the assessing officer should not deny an Input Tax Credit (ITC) claim solely on the basis that it was not claimed in the GSTR-3B returns, without examining all relevant documents and allowing the registered person to substantiate their claim
B. Details of the Case:
- Petitioner contested assessment orders for FY 2017-18, FY 2018-19 and FY 2019-20 arguing eligibility for ITC as reflected in the GSTR-2A and annual GSTR-9 returns, despite nil returns filed in the GSTR-3B returns.
- Court found that the assessment orders were issued rejecting the ITC claims solely because they were not claimed in the GSTR-3B returns, without proper examination of the petitioner's documentation supporting the ITC claims. Thus, remanded the case back to the assessing officer for re-consideration of the ITC.
