2025 (3) TMI 552 - HC - GST

Challenge to order passed under Section 73 of the WSBGST /CGST 2017 - disallowance of ITC claimed by the petitioner on the basis of the returns filed under Section 39 of the said Act in Form GSTR 3B beyond the due date - HELD THAT - In this case the ITC had been disallowed by reasons of the petitioner filing the return in Form GSTR 3B beyond the due date and on the basis of insertion of subsection (5) to Section 16 the returns filed by the petitioner which are in respect of the tax period from September 2018 to March 2019 have now been regularized having regard to the new cut of date provided for in Section 16(5) of the said Act it is opined that the petitioner cannot be denied the benefit of the aforesaid amendment. The petitioner is permitted to apply before the appropriate authority by making appropriate rectification application. Petition disposed off.

Summary

The Calcutta High Court, presided by Justice Raja Basu Chowdhury, addressed a writ petition challenging an order under Section 73 of the West Bengal Goods and Services Tax (WSBGST)/Central Goods and Services Tax (CGST) Act of 2017. The petitioner contested the disallowance of Input Tax Credit (ITC) for the tax period from September 2018 to March 2019, based on returns filed in Form GSTR 3B beyond the due date.The petitioner referenced the West Bengal Goods and Services Tax (Amendment) Act, 2024, which was notified on January 10, 2025. This amendment inserted sub-Section (5) to Section 16 of the Act, retroactively effective from July 1, 2017, extending the cut-off date for filing returns to November 30, 2021, thereby withdrawing the penal effect of sub-Section (4) of Section 16 for certain financial years.The court acknowledged that the petitioner's returns were filed within this extended deadline, as per Section 16(5). The Central Board of Indirect Taxes and Customs had issued a circular on October 15, 2024, allowing taxpayers to file rectification applications to benefit from the amendment.The court concluded that the petitioner should not be denied the amendment's benefits and permitted the petitioner to apply for rectification before the appropriate authority. Consequently, the writ petition WPA 21120 of 2021 was disposed of with these directions.