The Kerala High Court remanded the case for re-adjudication on the case of the Submission of GSTR -1 established on the Central Board of Direct Taxes ( CBDT ) Circular. Mr. Abraham K. J., Counsel for the petitioner and Ms. Reshmita Ramachandran, Government Pleader.
The applicant M/S Kochi Medicals, is a registered dealer under the CGST/SGST Act, 2017 provisions. After the GST regime was proceeded w.e.f. 01.04.2017, the applicant submitted the return for the period from July 2017 to March 2018 in GSTR – 3B. A notice in Form GST ASMT – 10 on 08.07.2020 was issued to the applicant for his claim for an input tax credit on supplies he obtained from the supplier/dealer.
The foundation to provide the said notice was that there was a mismatch in GSTR-3B that the applicant has filed and GSTR-2A for the ITC he has availed. The assessing authority based on the mismatch between GSTR-3B furnished via the applicant and GSTR-2A does not permit the ITC filed via the applicant to the extent of mismatch. From the order, the applicant has been dissatisfied and filed a plea. But it could get dismissed by the impugned order.
The counsel for the applicant furnished that the same was the first phase of GST provision execution and the dealers noted issues in understanding, uploading, and correctly filing returns. The Central Board of Indirect Taxes and Customs viewed such issues and allotted Circular No. 183/15/2022-GST dated 27.12.2022 giving waiver to the dealers concerning the financial years 2017-18 and 2018-19.
In the circular, it is specified that where a supplier has filed Form GSTR – 1 as well as return in Form GSTR – 3B for a tax duration, but losses to report a certain supply in Form GSTR – 1 and because of the said failure on the part of the supplier/dealer, the supply obtained via the recipient dealer did not get effected in Form GSTR – 2A, in such cases, returns in ITC claimed by the registered person in the Form of GSTR – 3B and that available in Form GSTR – 2A is to be managed according to the procedure specified in para 4 of the said Circular.
It was subsequently furnished that where a supply was made to the registered individual and an invoice was issued according to Rule 46 of CGST rules that has the GSTN of the recipient, however, the supplier has incorrectly reported the stated supply as B2C rather than B2B supply, in his Form GSTR – 1 because of which the said supply did not get shown in Form GSTR – 2A of the said registered person, in the same cases, the difference in ITC availed via the registered person in his return in Form GSTR – 3B and that available in Form GSTR – 2A must get managed via complying with the procedure as furnished in para 4 of the said Circular.
The petitioner’s Counsel submitted that the applicant has filed the second plea before the Tribunal but, in the absence of the constitution of the said Tribunal, the applicant has approached the Court.
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The impugned orders are been set aside by the court of Justice Dinesh Kumar Singh and remanded the case back to the assessing authority to acknowledge the applicant’s case afresh under Circular No. 183/15/2022-GST on 27.12.2022.
| Case Title | M/s. Kochi Medicals Vs. State Tax Officer |
| Citation | WP(C) NO. 1060 OF 2024 |
| Date | 10.01.2024 |
| Assessee By | Sri. K. J. Abraham, Sri. Aravindakshan K. R., Sri. Nikhil John, Sri. S. Vinodkumar |
| Revenue By | Smt. Reshmita Ramachandran |
| Kerala High Court | Read Order |
