In a huge relief for taxpayers, the Calcutta High Court has authorised a rectification application for Input Tax Credit (ITC) applications that were previously denied under Section 16(4) of the GST Act.
The decision is based on the retrospective modification implemented under the West Bengal GST (modification) Act, 2024, which provides much-needed relief to people affected by such disallowances.
The case featured Prabir Kumar Das, who challenged the denial of his Input Tax Credit (ITC) for the period September 2018 to March 2019. The denial of ITC was based on the fact that the returns submitted in Form GSTR-3B were filed beyond the due date, violating the provisions provided in Section 16(4) of the applicable Act.
Advocate Himangshu Kumar Ray, appearing for the applicant, has said that a new sub-section (5) to Section 16 was inserted by the 2024 Amendment Act, wef July 1, 2017.
For claiming ITC for invoices related to FY 2017–18 to 2020–21, the cut-off date has been relaxed under this change, permitting these claims till November 30, 2021.
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The returns of the applicant have been filed belatedly, but they were within the extended duration permitted under the revised provision. The taxpayers can file the rectification requests via a specified format, cited under the circular of CBIC on October 15 that Mr Ray referred to.
The amendment and the circular have been considered by the state council, citing that the same relief can only be granted upon an electronically submitted rectification application.
Justice Raja Basu Chowdhury, hearing the case, cited that the returns of the applicant have been regularised now under the revised section 16(5), and the advantage of the benefit cannot be refused. The Calcutta High Court permits the applicant to submit the precise rectification request to the GST authorities.
As per that, the writ petition (WPA 21120 of 2021) was disposed of.
The other taxpayers whose GST Input Tax Credit (ITC) claims were denied only because of the late filings in the earlier timelines are anticipated to offer the same relief by this ruling.
| Case Title | Prabir Kumar Das vs Assistant Commissioner of State Tax |
| Case No. | WPA 21120 of 2021 |
| For the Petitioner | Mr. Himangshu Kumar Ray, Mr. Subhasis Podder |
| For Revenue | Mr. Anirban Ray, Mr. Md. T.M.Siddiqui, Mr. Nilotpal Chatterjee, Mr. Tanoy Chakraborty, Mr. Saptak Sanyal |
| Calcutta High Court | Read Order |
