New GST Case Law on Section 16(4) of the CGST Act; GST Input Tax Credit (ITC)
Madras HC, Madurai Bench – KAVIN HP GAS GRAMIN VITRAK v. THE COMMISSIONER OF COMMERCIAL TAXES [W.P.(MD).Nos.7173 and 7174 of 2023 and W.M.P.(MD)Nos.6764 and 6765 of 2023]
– High Court allows belated Input Tax Credit claim, citing the absence of GSTR-2, and directs manual filing due to lack of an enabling mechanism
➡️ The petitioner challenged the recovery of Input Tax Credit (ITC) claimed belatedly in GSTR-3B due to financial constraints.
➡️ The petitioner argued that GSTR-3B is not meant for claiming ITC, and the absence of prescribed Form GSTR-2 made it impossible to file for eligible ITC.
➡️ The court held that as per Section 38 of the CGST Act, 2017 and Rule 60 of the CGST Rules, 2017, ITC should be claimed through GSTR-2, but the GSTN had not provided the facility for GSTR-2.
➡️ Since GSTR-2 was not available, the court concluded that the petitioner cannot be expected to file the form electronically, and the initiation of proceedings based on this ground is not sustainable.
➡️ The court directed the respondents to permit the petitioner to file manual returns, accept belated returns if otherwise in order, and allow the claim of ITC on outward supply/sales without prejudice due to the absence of an enabling mechanism. The impugned order was set aside, and the writ petitions were allowed.
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