Transitioning unutilized input tax credit under the Kerala Goods ...

Unadjusted TDS can't be transitioned as unutilized input tax credit under Kerala GST Act.

Case Laws     GST

September 4, 2024

Transitioning unutilized input tax credit under the Kerala Goods and Services Tax Act, 2017 - error in claiming input tax credit of unadjusted TDS. The High Court held that unadjusted TDS, being a component of output tax payable, cannot be transitioned as unutilized input tax credit. While the appellant had utilized Rs.37,24,463/- for paying output tax due under CGST/SGST Act, it was technically entitled to claim a refund of Rs.59,05,352/- representing unadjusted TDS or output tax paid in excess. To serve the ends of justice, the Court modified the orders to consider subsequent events since filing the writ petition. The disallowance of transition of TDS to the extent of Rs.21,80,889/- was upheld, and the appellant was allowed to seek a refund of this amount from the State Government towards unadjusted TDS. The penalties of Rs.3,72,446/- and Rs.25,000/- imposed were sustained, considering the irregularity by the appellant. The Writ Appeal was disposed of accordingly.

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