2025 (3) TMI 942 - HC - GST

Denial of the benefit of Input Tax Credit on account of the provisions contained in Sub Section(4) of Section 16 of the Central Goods and Services Tax/State Good and Services Tax Act 2017 for the financial year 2018-19 - HELD THAT - By the incorporation of section 16(5) to the CGST Act the time limit to claim the Input Tax Credit for the financial years 2017-18 to 2020-21 has been extended till 30-11-2021. In view of the incorporation of sub-section (5) of Section 16 of the CGST/SGST Act petitioner claims that he will be entitled to Input Tax Credit as he had filed the returns within the time prescribed therein. Petitioner s claim for Input Tax Credit has been rejected without reference to section 16(5) of the Act. Hence Exhibit-P4 order is liable to be set aside to the extent it had denied Input Tax Credit to the petitioner on the basis of Sub Section (4) of Section 16 of the CGST/SGST Act and a reconsideration is required to be directed. Exhibit-P4 is set aside to the extent it has denied Input Tax Credit to the petitioner and the competent authority is directed to pass fresh orders within three months from the date of receipt of a certified copy of this judgment after taking note of the provisions contained in Section 16(5) of the CGST/SGST Act and after affording the petitioner an opportunity of hearing. Petition disposed off.

Summary

In the judgment delivered by the Kerala High Court, Justice Bechu Kurian Thomas addressed the petitioner's grievance regarding the denial of Input Tax Credit (ITC) for the financial year 2018-19. The denial was based on Sub Section (4) of Section 16 of the Central Goods and Services Tax/State Goods and Services Tax Act, 2017 (CGST/SGST Act), as per Exhibit-P4 dated 15.04.2024.The petitioner argued that the incorporation of Sub-Section (5) of Section 16 of the CGST/SGST Act extended the time limit to claim ITC for the financial years 2017-18 to 2020-21 until 30-11-2021. The petitioner contended that their ITC claim was unjustly rejected without considering this provision, as they had filed the returns within the extended time frame.The court set aside Exhibit-P4 to the extent it denied ITC to the petitioner and directed the competent authority to issue fresh orders within three months. The new decision must consider Section 16(5) of the CGST/SGST Act and provide the petitioner an opportunity for a hearing. The writ petition was disposed of accordingly.