No Reversal Of ITC Due To Belated ITC Claim Beyond Time Prescribed u/s 16(4), When Form GSTR-2 Is Not Notified

Last updated: 26 December 2023

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Quick Summary

The Madurai Bench of the Madras High Court has ruled that Input Tax Credit (ITC) cannot be reversed due to a belated claim made beyond the time prescribed under Section 16(4) of the GST Act, if Form GSTR-2 has not been notified. This decision addresses a situation where a business claimed ITC for petroleum products after the prescribed period, but argued their GSTR-3B returns were submitted physically due to financial issues.

Court :
Madras High Court

Brief :
This Court is inclined to quash the impugned orders and accordingly the impugned orders are quashed. The respondents shall permit the petitioner to file manual returns whenever the petitioner is claiming ITC on the outward supply / sales without paying taxes. Further the respondents are directed accept the belated returns and if the returns are otherwise in order and accordance to law, the claim of ITC may be allowed. Hence, the matter is remitted back to the authorities for reconsideration.

Citation :
W.P.(MD).Nos.7173 and 7174 of 2023 and W.M.P.(MD)Nos.6764 and 6765 of 202

Daily Limit Reached