ITC from one GSTIN can be adjusted against another if a duplicate GSTIN is issued and the supplier mistakenly uses the incorrect GSTIN.

The Case:

• A company, M/s Excel Vehicles, received two separate GSTINs (Goods and Services Tax Identification Number) for the same business under different authorities.
• The petitioner (M/s Excel Vehicles) filed returns using one GSTIN (09AAICM0811C2ZW) while purchases from a major supplier (TATA Motors) were reflected under the other GSTIN (09AAICM0811C1ZX).
• This discrepancy led to an audit objection claiming excess Input Tax Credit (ITC) availed on GSTIN 09AAICM0811C2ZW.
• The petitioner approached the High Court seeking adjustment of ITC and challenging the demand raised by the authorities.

Arguments Presented:

• The petitioner argued that the error stemmed from the department issuing duplicate GSTINs.
• They relied on a government circular allowing ITC benefit even if suppliers declare supply with the wrong GSTIN (Circular No.183/15/2022-GST).
• Additionally, they cited a recent court judgment (M/s. Santosh Kumar) supporting their case.

Court's Decision:

• The High Court agreed with the petitioner's arguments and found Circular No.183/15/2022-GST applicable.
• The court considered the M/s. Santosh Kumar judgment with similar facts and found it persuasive.
• Consequently, the court:Quashed the demand order (December 12, 2023) and directed the authorities to pass a fresh order considering the aforementioned circular.

GST Case Law My Auto World (Kanpur) Pvt. Ltd

Citation-2024 TAXONATION 2463 (ALLAHABAD)

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