Kerala High Court Rules GST Returns Filed Before November 30 2021 Entitled To Input Tax Credit

By | July 17, 2026
0 Comment

Kerala High Court Rules GST Returns Filed Before November 30 2021 Entitled To Input Tax Credit

Kerala High Court Rules GST Returns Filed Before November 30 2021 Entitled To Input Tax Credit

Issue

Whether the tax authorities were justified in denying Input Tax Credit (ITC) under Section 16(4) of the CGST/KGST Act for the period April 2018 to March 2019, despite the subsequent retrospective insertion of Section 16(5) which relaxes the limitation period for returns filed on or before November 30, 2021.

Facts

  • The petitioner, a registered taxpayer under the Goods and Services Tax (GST) regime, was assessed by the respondent tax authorities.

  • The assessment order denied the petitioner’s claim for Input Tax Credit (ITC) for the relevant period (April 2018 to March 2019) on the ground of belated return filings under Section 16(4) of the CGST/KGST Act.

  • A separate demand was also raised against the petitioner for alleged excess ITC availed.

  • The petitioner filed a writ petition challenging the denial, pointing to the legislative relaxation under the retrospectively inserted Section 16(5), which validates ITC claims where returns were submitted on or before November 30, 2021.

  • The record indicated that the petitioner’s returns for the relevant months of the disputed period were submitted between October 2018 and April 2019, well ahead of the statutory cut-off date.

Decision

  • The Kerala High Court held that since the returns for the relevant months were submitted prior to the November 30, 2021 cut-off, they fell squarely within the relaxed timeline contemplated under Section 16(5) of the CGST/KGST Act.

  • The High Court ruled that the petitioner is legally entitled to the benefit of the retrospective amendment to Section 16.

  • The Court quashed the demand order to the extent of the ITC denial based on the Section 16(4) limitation period.

  • The Court directed the first respondent (the tax authority) to reconsider the matter and grant the ITC benefit to the petitioner, provided they are otherwise eligible under other statutory parameters.

Key Takeaways

  • Retrospective Relief: Section 16(5) of the CGST/KGST Act, introduced retrospectively from July 1, 2017, acts as a statutory override to the standard limitation period under Section 16(4) for the financial years 2017-18 through 2020-21.

  • Crucial Cut-Off: Taxpayers who filed their GST returns for these specified financial years on or before November 30, 2021, cannot have their ITC claims disallowed solely on the grounds of time-bar limitations under Section 16(4).

  • Conditional Grant: While time-bar objections under Section 16(4) are neutralized by Section 16(5), the taxpayer must still satisfy other general eligibility criteria (such as possession of valid invoices and receipt of goods/services) to successfully claim the credit.

HIGH COURT OF KERALA
Silver Castle Holidays and Resorts (India) (P.) Ltd.
v.
Superintendent, Central Tax and Central Excise Department
ZIYAD RAHMAN A.A., J.
WP(C) NO. 41806 OF 2025
JULY  2, 2026
Akhil Suresh, Smt.Kalliyani Krishna B., Amrith M.J., Smt.Anita Elizebeth Babu and Rahul T., Advs. for the Petitioner. R. Harishankar, SC and J. Vishnu, Adv. for the Respondent.
JUDGMENT
1. The petitioner is a registered taxpayer under the provisions of the CGST/SGST Act. The grievance highlighted in this writ petition is against Ext.P3 order passed under Section 73 of the CGST Act, in which the assessment was completed, mainly on two grounds. Firstly, the input tax credit claimed by the petitioner pertaining to the months from April 2018 to March 2019 were declined on the reason that the petitioner failed to submit the returns within the periods stipulated in Section 16(4).
2. Apart from the above, the some other liability was also imposed upon the petitioner on the reason that, the petitioner had availed excess input tax credit. According to the petitioner, as far as the liability towards excess availment of input tax credit is concerned, the petitioner is prepared to pay the said amount, as it is not disputing it. However, the contest of the petitioner is in relation to the denial of input tax credit on the ground that the petitioner failed to submit the returns within the time contemplated under Section 16(4). The challenge raised in this regard is by placing reliance upon Section 16(5) of the CGST Act, which provides that, in case the taxpayer is submitting the returns on or before 30.11.2021, such taxpayer would be entitled to claimed the input tax credit.
3. In this case, it is discernible from Ext.P2 show cause notice itself that, the petitioner had submitted the returns for the relevant months, between the period from 05.10.2018 to 23.04.2019. Thus, it is evident that the petitioner had submitted the returns within the cut off date contemplated under Section 16(5) of the Act and therefore, the petitioner is entitled to the reliefs.
4. Accordingly, this writ petition is disposed of quashing Ext.P3, to the extent it declined the input tax credit on the ground that the petitioner failed to submit the returns within the period stipulated under Section 16(4) of the Act, with a direction to the 1st respondent to reconsider the matter and grant the benefit of input tax credit in the light of Section 16(5) if the petitioner is otherwise entitled.