The Karnataka High Court has allowed a company to reconcile the mismatches between the ITC claimed in its GSTR-3B returns and the data shown in GSTR-2A.
The company, Ganges International Pvt. Ltd had contested the order of the tax authority that raised a demand for an incorrectly claimed ITC under GST.
The various issues are raised by the tax authority, such as excess ITC claimed, ITC claimed on invoices from non-existent suppliers, and non-payment of GST under the Reverse Charge Mechanism (RCM). As per such findings, the authority had issued a demand, citing that the company had claimed ineligible ITC.
As per the company, if there were mismatches between the ITC claimed in Form GSTR-3B and the details in Form GSTR-2A, the authority must comply with the process cited in Circular No.183/15/2022-GST issued on 27th December 2022.
The same circular furnishes clarification for the circumstances where there are mismatches between the ITC claimed in their GSTR-3B returns and the data shown in GSTR-2A.
The HC agreed with the company that the same process had not been complied with. The court mentioned that all mismatches between the ITC claimed in Form GSTR-3B and the details in Form GSTR-2A must be authorised to be reconciled within the circular.
Also Read: How GST Software Handles Input Tax Credit (ITC) Tracking
Hence, the court set aside the order and sent the case back to the tax authorities for fresh consideration.
| Case Title | Ganges International P. Ltd. Vs. Assistant Commissioner of Tax |
| Case No. | Writ Petition No. 6885 of 2026 (T-Res) |
| For Petitioner | Deepak Bhaskar |
| For Respondent | Aravind V Chavan |
| Karnataka High Court | Read Order |
