2023 (11) TMI 1012 - HC - GST

Availment of excess input tax credit - difference between Form GSTR 2A and Form GSTR 3B for the tax period 2017-18 - HELD THAT - The Government of India, Department of Revenue, Central Goods Indirect Tax and Customs considered the difficulties faced by the assessees in the initial year in respect of difference in input tax availed in Form GSTR-3B as compared to that received in form GSTR 2A for the financial year 2017- 18 and 2018-19 and has issued clarification vide Circular No. 183/15/2022-GST dated 27.12.2022, and it has been said that where the supplier has filed GSTR-1 as well as return in Form GSTR-3B for a tax period, but has declared the supply with the wrong GSTIN of the recipient in Form GSTR-1, the difference regarding the input tax credit claim by the recipient dealer in its Form GSTR-3B, but it is not reflected in Form GSTR-2A because of the wrong GSTIN of the recipient, the procedure has to be followed as amended in paragraph 4 of the Circular dated 27.12.2022. Taking into consideration Circular No. 183/15/2022-GST dated 27.12.2022, the present writ petition is allowed. The impugned Exts. P5 and P5(a) orders dated 14.06.2023 and 16.06.2023 are set aside. The matter is remitted back to the Assessing Authority to reconsider the case of the petitioner irrespective of the Form GSTR 2A for the petitioner s claim of the input tax credit. However, the petitioner shall deposit 10% of the amount assessed within a period of fifteen days and appear before the Assessing Authority with all the documents and evidence in his possession for passing fresh orders in accordance with the law. Petition allowed by way of remand.

Summary

Issues:
The issues involved in this case are the challenge to orders dated 14.06.2023 and 16.06.2023 regarding the availing of excess input tax credit by the petitioner based on differences between Form GSTR 2A and Form GSTR 3B for the tax period 2017-18.

Excess Input Tax Credit Issue:
The petitioner, a registered dealer under CGST and SGST Acts, challenged the orders alleging excess input tax credit availed due to discrepancies between Form GSTR 2A and Form GSTR 3B for the tax period 2017-18. The petitioner cited Circular No. 183/15/2022-GST, which addresses issues faced by assessees in reconciling input tax credits. The Circular outlines procedures for verifying conditions under Section 16 of the CGST Act and specifies actions for cases where discrepancies in claimed input tax credit exceed Rs 5 lakh and cases where they are up to Rs 5 lakh. Notably, relaxations mentioned in the Circular do not apply to claims made after the due date for filing returns until March 2019 if the supplier did not furnish details in Form GSTR-1. The Circular clarifies that it applies to genuine errors in reporting during financial years 2017-18 and 2018-19.

Judicial Precedent Reference:
The petitioner's counsel referred to a judgment in Diya Agencies v. State of Kerala, where the Court emphasized that denial of input tax credit solely based on Form GSTR-2A discrepancies is not sustainable. The Court directed the Assessing Officer to allow the petitioner to substantiate their claim with evidence, remanding the matter for a fresh assessment if the claim is found to be genuine. This judgment was cited to support the petitioner's claim for input tax credit despite discrepancies in Form GSTR 2A.

Judgment and Remand:
Considering the Circular and the legal precedent, the High Court allowed the writ petition, setting aside the challenged orders. The matter was remitted back to the Assessing Authority for reconsideration of the petitioner's input tax credit claim without strict reliance on Form GSTR 2A. The petitioner was directed to deposit 10% of the assessed amount within fifteen days and present all relevant documents for a fresh assessment. If the Assessing Authority finds the claim unjustified, the petitioner would be liable to remit the remaining amount. The petitioner was required to appear before the Assessing Authority on a specified date to comply with the directions provided.