Due to the mismatch between GSTR 2A and GSTR 3B, the ITC was denied, but the court granted the petitioner an opportunity to rectify the situation.

Overview of the Case

• A writ petition has been filed challenging assessment order and recovery notice.
• The petitioner's input tax credit of Rs. 1,10769/- (SGST + CGST) was denied due to a mismatch between GSTR 2A and GSTR 3B.

Petitioner's Arguments

• The petitioner claimed the input tax as per GSTR-3B, based on valid invoices.
• They stated that some suppliers uploaded incorrect data in GSTR-1 due to technical issues.

Response to the Show Cause Notice

• The authorities found the petitioner's reply unconvincing and unsatisfactory.
• GST DRC-01A was issued, followed by a notice under Section 73 of the State Goods and Services Tax Act, 2017.
• An order for Rs. 3,61,304/- was passed, which included denied input tax, interest, and penalty.

Counsel's Submissions

• The petitioner's counsel argued that the supplier/dealer remitted the tax collected, albeit with some delay.
• There was no difference between GSTR 3B and GSTR 2A, according to the counsel.
• The counsel referred to a judgment stating that denial of input tax credit solely due to a mismatch is incorrect if the assessee can prove payment to the supplier/dealer.

Court's Decision

• The court agreed that if the tax claimed by the petitioner is reflected in GSTR 2A, even with a delay, the denial may not be correct.
• The court granted the petitioner one opportunity to present relevant documents before the Assessing authority within seven days.
• The writ petition was allowed, and the impugned order and notice were set aside.
• If the assessing authority finds the petitioner's claim bona fide, a revised order granting the input tax credit will be issued

Topic- Geetha Agencies Versus Deputy Commissioner of State Tax

Court-Kerala High COurt

Date-03/10/2023

Team Taxonation

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