Kerala HC: GSTR-2A & 3B Mismatches Not Ground for ITC Claim Denial

Philips Auto Agencies (India) Pvt. Ltd. approached the Kerala High Court post being denied Input Tax Credit (ITC) under the Goods and Services Tax (GST) Act for the FY 2018-19. The refusal was credited to a discrepancy between GSTR-2A and GSTR-3B.

Complete Details

• Denial of GST ITC: The applicant argued that the rejection of ITC derived from a mismatch between GSTR-2A and GSTR-3B. GSTR-2A was introduced in September 2018, rendering the denial unjustifiable.
• Remittance for New Consideration: The writ petition is been disposed of by the court, setting aside the assessment order and remitting the case to the Assessing Authority. The applicant was advised to appear before the authority for reconsideration on a set date.
• Legal Tax Providing: The petitioner invoked Section 73(3) of the GST Act, which mandates furnishing a statement of mismatch to the taxpayer. These statements were not provided in the same matter, depriving the applicant of the chance to verify their GST ITC claim.
• Judicial interference: The court hearing the arguments from both parties, said that the claim of the applicant merits reconsideration by the Assessing Authority. The court mandated the first respondent to review the claim, regarding the Circular on 27.12.2022 and giving the applicant a chance for a proper hearing.

Closure: In the case of Philips Auto Agencies the Kerala High Court’s decision emphasizes the importance of procedural justice and compliance with the legal provisions in the GST assessments.

Refusing the ITC only on the grounds of the mismatch between GSTR-2A and GSTR-3B without furnishing the discrepancy statement breaches the principles of natural justice.

The interruption of the court confirms that the claim of the applicant is acknowledged as per the law and the pertinent circulars, stressing the importance of due procedure in the case of tax.