Retrospective Cut-Off Date Under Section 16(5) Overrides Late Filing Bar, Entitling Assessee to Input Tax Credit

By | September 30, 2026
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Retrospective Cut-Off Date Under Section 16(5) Overrides Late Filing Bar, Entitling Assessee to Input Tax Credit

Retrospective Cut-Off Date Under Section 16(5) Overrides Late Filing Bar, Entitling Assessee to Input Tax Credit

Issue

Whether Input Tax Credit (ITC) can be denied under Section 16(4) for delayed filing of returns when the return was furnished prior to the extended statutory cut-off date of November 30, 2021 prescribed under Section 16(5).

Facts

  • Assessee Registration: The petitioner is an assessee registered under the CGST/KGST Act.
  • ITC Claim & Denial: The petitioner claimed Input Tax Credit for March 2019, which the Assessing Officer (AO) disallowed under Section 73 on the ground that the return was not filed within the time limit prescribed under Section 16(4).
  • Return Filing Date: The return for the relevant period was furnished on January 2, 2020.
  • Statutory Invocation: The petitioner challenged the assessment order via a writ petition, invoking the benefit of Section 16(5), which sets an extended cut-off date of November 30, 2021, for availing ITC.

Decision

  • Cut-Off Met: The Court noted that Section 16(5) prescribes a cut-off date of November 30, 2021, for availing Input Tax Credit.
  • Timely Submission: Since the petitioner filed the return on January 2, 2020, the filing fell well within the permissible cut-off contemplated under Section 16(5).
  • Unsustainability of Denial: The denial of ITC based on the general time limitation under Section 16(4) was held to be legally unsustainable.
  • Quashing and Remand: The order declining ITC for March 2019 was quashed, and the assessing authority was directed to reconsider and grant the credit under Section 16(5), provided the assessee is otherwise eligible.

Key Takeaways

  • Overriding Effect of Section 16(5): The special provisions of Section 16(5) override the strict limitation timelines originally imposed by Section 16(4) for claiming Input Tax Credit.
  • Compliance Deadline: As long as the return for the relevant tax period is furnished on or before November 30, 2021, the benefit of ITC cannot be denied solely on the ground of delayed filing.
  • Relief Against Assessment Orders: Assessment orders denying ITC due to belated filing are liable to be quashed and remanded for reconsideration in light of Section 16(5).
HIGH COURT OF KERALA
Vinod George
v.
State Tax Officer
ZIYAD RAHMAN A.A., J.
WP (C) NO. 30960 OF 2026
SEPTEMBER  10, 2026
R.Sreejith, Padmanathan K.V. and Mohammed Shinaf A., Advs. for the Petitioner. Smt. Sindhu Santhalingam, Sr. G.P. for the Respondent.
JUDGMENT
1. The petitioner is a registered taxpayer under the provisions of the CGST/KGST Act. The grievance of the petitioner is regarding the Ext.P3 order passed under Section 73 of the CGST Act, by which the input tax credit claimed by the petitioner, pertaining to the period of March 2019, was declined on the ground that, the petitioner failed to furnish the returns within the statutory period contemplated under Section 16(4) of the CGST Act.
2. The challenge is raised by the petitioner mainly on the ground that, as per Section 16(5) of the Act, the petitioner is entitled to get the input tax credit, in view of the fact that, the petitioner had submitted the return before the cut-off date contemplated therein, which is 30.11.2021. On going through Ext.P1 return, it is seen that the petitioner had submitted the return on 02.01.2020, and thus, it is evident that the petitioner had submitted the returns within the cutoff date contemplated under Section 16(5) of the CGST Act. Therefore, in the light of the statutory provisions contemplated in Section 16(5), the petitioner is entitled to the reliefs.
Accordingly, this writ petition is disposed of by quashing Ext.P3 to the extent it declines the input tax credit pertaining to the month of March 2019, on the ground that the petitioner failed to submit the returns within the period contemplated under Section 16(4) of the Act, with a direction to the assessing authority to reconsider the matter and to grant the input tax credit on the strength of Section 16(5), if the petitioner is otherwise entitled.