Integrated Goods and Services Tax (IGST) Input Tax Credit (ITC) declared in GSTR-9 can be set off against tax demand if skipped in the monthly GSTR-3B, the Calcutta High Court held.
Justice Om Narayan Rai bench said that the appellate authority did not give an explanation why the IGST ITC declared in GSTR-9 cannot be set off against the tax demand.
The applicant for the case is not able to claim the ITC towards the IGST related to May 2018, June 2018 and July 2018 at the time of filing the monthly returns in form GSTR-3B.
After that, the taxpayer considered her mistake and claimed ITC at the time of filing the annual return in Form GSTR-9 for the year 2018-19.
U/s 73 of the CGST Act, an SCN was issued to the taxpayer. The taxpayer, by mistake she did not claim ITC, but she was eligible for the fiscal year 2018-19, and she had rectified the mistake by claiming it while uploading Form GSTR-9 for the mentioned fiscal year.
It was shown that on the taxpayer who has claimed ITC concerning IGST to the tune of Rs 3,54,457.99, it must be offset against the tax demand for CGST and SGST, and the taxpayer shall merely be obligated to pay a sum of Rs 83,608.07 towards the taxes due and payable with interest.
The Appellate Authority concluded that, without specifying as to why, the appeal of the taxpayer was “devoid of logic, facts & proper explanation”.
The Appellate Authority noted that some necessary documents were missing; however, it did not specify which documents were absent.
The bench pointed out that the Appellate Authority failed to explain why claiming Input Tax Credit (ITC) for the Integrated Goods and Services Tax (IGST) in Form GSTR-9 would not benefit the taxpayer, nor did it clarify why this amount could not be offset against the department’s claims for CGST and SGST.
In light of these issues, the bench set aside the impugned order and remanded the case back to the Appellate Authority for a fresh evaluation.
| Case Title | Calcutta HC’s Order in The Case of Laxmi Ghosh vs. The State Of West Bengal & Ors |
| Case No. | W.P.A. 20364 of 2025 |
| For Petitioner | Himangshu Kumar |
| For Respondent | S.K. Dutta |
| Calcutta High Court | Read Order |
