Re-credit of Input Tax Credit (ITC) cannot be denied due to technical limitations of the GST portal

Last updated: 11 November 2025

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The Delhi High Court has ruled that taxpayers cannot be denied the re-credit of Input Tax Credit (ITC) to their Electronic Credit Ledger due to technical limitations on the GST portal. In a case involving Mohan Footcare Pvt. Ltd., the court found that even though the GST portal lacked the functionality to process re-credits adjusted against government dues, the company's statutory right to this credit must be upheld. The court ordered the Department to manually re-credit the amount within four weeks, emphasising that technical or administrative issues should not prevent taxpayers from accessing their lawful entitlements.

Court :
Delhi High Court

Brief :
The Hon'ble Delhi High Court in the case of Mohan Footcare Pvt. Ltd. v. Deputy Commissioner of CGST [W.P.(C) 6804/2024 order dated September 18, 2025] held that the refund of ITC initially adjusted as erroneous refund must be re-credited to the assessee's Electronic Credit Ledger, and that technical limitations of the GST portal cannot be used to deny statutory rights to re-credit.

Citation :
W.P.(C) 6804/2024 order dated September 18, 2025

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1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

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Attached File : 671907_5899_mohan_footcare_pvt_ltd.pdf

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Judgement posted by

Bimal Jain

Service

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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