The Kerala High Court has ruled that GST Input Tax Credit (ITC) cannot be denied if the taxpayer has filed the relevant tax returns within the prescribed time limit under Section 16(5) of the Central Goods and Services Tax (CGST) Act, 2017.
The bench of Justice Ziyad Rahman A.A. has asked tax authorities to reconsider the refusal of ITC to the taxpayer, a Thrissur-based manufacturing firm, holding that the company may be qualified for the benefit under the revised norms of the Central Goods and Services Tax (CGST) Act.
The taxpayer submitted the petition against an assessment order that did not accept its claim for ITC during November 2018 and March 2019. The assessment order had concluded that the company was not eligible as it had not submitted its GST returns by the due date mentioned u/s 16(4) of the CGST Act.
The applicant/taxpayer, a registered GST taxpayer based in Porkulam, Thrissur district, contested the assessment order issued by the State GST authorities.
The company mentioned that its returns were submitted post-due date; they were filed before the extended deadline rolled out via Section 16(5) of the CGST Act after the legislative changes.
The disputed returns were submitted on the mentioned dates:
- November 2018 return – October 29, 2019
- December 2018 return – November 18, 2019
- January 2019 return – November 25, 2019
- February 2019 return – December 27, 2019
- March 2019 return – January 4, 2020
The applicant mentioned that such filings come under the cut-off date of November 30, 2021, stipulated u/s 16(5), which makes the company eligible to claim the related ITC.
The High Court analysed the assessment order and the statutory provisions and said that the returns in question had been submitted before the extended due date mentioned u/s 16(5).
The Court observed that the assessment order itself considered the dates on which the returns were submitted. As all the returns had been filed before November 30, 2021, the Court discovered that the tax authorirites did not able to apply the revised legal norms while denying the ITC claim.
Read Also: Kerala HC: GST ITC Cannot Be Denied if Tax Returns Filed Within Section 16(5) Deadline
The HC partially set aside the assessment order insofar as it refused the ITC for the disputed months. The Court did not directly provide the credit; instead, it asked the State Tax Officer to reconsider the case and extend the benefit of input tax credit if the petitioner fulfils all other statutory norms.
| Case Title | Excel Polymers vs. State Tax Officer |
| Case No. | WP(C) NO. 21324 OF 2026 |
| For Petitioner | Shri. S.Anil Kumar, Shri. Sabu C.J, Shri. Rahul A, and Shri. Anantha Jith S |
| For Respondent | Shri Shaij Raj T.K. |
| Kerala High Court | Read Order |
