GST paid by the Recipient but not remitted to the Government by the Supplierdoes not provideground for denying ITC

Last updated: 25 October 2023

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The Kerala High Court has ruled that businesses should not be denied Input Tax Credit (ITC) simply because their supplier has failed to remit the GST paid to the government. The court found that if the recipient can provide evidence that their ITC claim is genuine, it should not be automatically rejected based on the supplier's non-compliance. Consequently, the court set aside an assessment order that denied ITC and ordered a fresh review of the evidence submitted by the business.

Court :
Kerala High Court

Brief :
The Hon'ble Kerala High Court, in the case of M/s. Goparaj Gopalkrishnan Pillai v. State Tax Officer, Thripunithura & Ors. [WP(C) 29855 of 2023 dated October 5, 2023] allowed the writ petition and held that the Input Tax Credit ("ITC") should not be denied on the ground that GST paid is not reflected in Form GSTR-2A due to non-remittance by Supplier. Therefore, the High Court set aside the Assessment Order to the extent of denial of ITC and directed the Revenue Department to examine the evidence placed on record by the assessee and pass fresh orders accordingly.

Citation :
WP(C) 29855 of 2023 dated October 5, 2023

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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