Non-Reflection in GSTR 3B: Madras HC Permits GST ITC Claim on Basis of GSTR 9, 2A

A Single Bench of the Madras High Court has suppressed the rejection of a Goods and Services Tax ( GST ) Input Tax Credit ( ITC ) availed on the grounds of non-inclusion of the same in GST Return – GSTR-3B.

By claiming that nil returns were incorrectly and inadvertently filed in the GSTR-3B returns, the applicant mentioned that he is qualified for ITC in each of the aforesaid assessment durations and that this is duly shown in the GSTR-2A returns.

The applicant mentioned that GSTR-9 (annual) returns were duly filed showing the ITC availed of the petitioner. Through refusing the claim, it mentioned that the orders impugned herein were issued.

The applicant said that the applicant has answered the SCN and specified that the qualified ITC in each of the assessment durations is more than the obligation of tax. Through further directing to the functional part of the orders impugned herein, the counsel argued that the ITC claim was denied only on the basis that the applicant did not avail the ITC in the GSTR-3B returns.

The ASG while accepting notice on behalf of the respondent stated that the applicant must claim the legal remedy and not approach this court. He also furnished that the load to proof is on the registered individual to build the eligibility of input tax credit (ITC). As this load was not released via the applicant, he furnished that with the orders impugned herein, no interruption is called.

The Single Bench of the Madras High Court noted that “When the registered person asserts that he is eligible for ITC by referring to GSTR-2A and GSTR-9 returns, the assessing officer should examine whether the ITC claim is valid by examining all relevant documents, including by calling upon the registered person to provide such documents. In this case, it appears that the claim was rejected entirely on the grounds that the GSTR-3B returns did not reflect the ITC claim. Therefore, interference is warranted with the orders impugned herein.”

The orders impugned here are quashed, and such cases are remanded to reconsideration. The applicant is allowed to hold all the documents related to its Input tax credit claims before the assessing officer for a maximum duration of 2 weeks from the receipt date of a copy of this order.

Important: Simply Understand GST ITC Differences in GSTR 3B & 2A Forms

The Single Bench of Senthilkumar Ramamoorthy mentioned that, on the receipt thereof, the respondent is rendered to furnish a reasonable chance to the applicant, including a personal hearing, and subsequently issue new assessment orders.