2024 (1) TMI 871 - HC - GST

Disallowance of Input tax credit on supplies received from the supplier/dealer - mismatch in the GSTR 3B filed by the petitioner and GSTR 2A in respect of the input tax credit - HELD THAT - The impugned orders in Exhibits P-4 and P-6 are set aside and the matter is remitted back to the assessing authority to consider the case of the petitioner afresh in the light of the Circular No. 183/15/2022-GST dated 27.12.2022. Petition allowed by way of remand.

Summary

Issues involved: Disallowance of input tax credit due to mismatch between GSTR-3B and GSTR-2A under CGST/SGST Act, 2017.

The judgment dealt with the disallowance of input tax credit claimed by a registered dealer under the CGST/SGST Act, 2017, due to a mismatch between the GSTR-3B filed by the petitioner and GSTR-2A. The assessing authority disallowed the input tax credit based on this discrepancy. The petitioner had filed an appeal against this decision, which was dismissed. The petitioner argued that during the initial implementation of GST provisions, dealers faced challenges in understanding and filing returns correctly. The Central Board of Indirect Taxes and Customs issued Circular No. 183/15/2022-GST, providing relaxation to dealers for the financial years 2017-18 and 2018-19 in cases where mismatches occurred due to supplier errors. The Circular outlined procedures to address discrepancies in ITC claimed in GSTR-3B and GSTR-2A. As the Tribunal was not constituted, the petitioner approached the High Court, seeking consideration of their case in light of the Circular. The Government Pleader did not contest that the petitioner's case fell within the scope of the Circular. The Court allowed the writ petition, setting aside the impugned orders and remitting the matter back to the assessing authority to reevaluate the petitioner's case in accordance with Circular No. 183/15/2022-GST. The petitioner was granted a personal hearing before finalizing the fresh assessment on remand.