Quick Summary
A taxpayer named Vabind, claimed Input Tax Credit for the FY 2018-19 under the Central Goods and Services Tax Act, 2017 (CGST Act). But department rejected the claim as - returns for that year were not filed within the time limit under Section 16(4) of the CGST Act. The petitioner, Vabind, challeng
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Vabind's Input Tax Credit claim was initially rejected because the returns for the financial year 2018-19 were not filed within the time limit stipulated by Section 16(4) of the CGST Act.
Vabind challenged the GST department's order before the Kerala High Court.
Section 16(4) sets a general deadline for claiming ITC linked to return filing dates, while Section 16(5) provides an extended cut-off date and overrides Section 16(4) due to its 'notwithstanding' clause.
The Kerala High Court quashed the order denying ITC and sent the matter back to the tax authorities for reconsideration, granting Vabind the benefit of Section 16(5).
Yes, the Kerala High Court confirmed that ITC is admissible if returns are filed within the Section 16(5) cut-off date, even if Section 16(4) was initially used to deny the credit.
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