GST UPDATE

????Desk of CA. Praveen Sharma 

Series- 468????

Not notifying of Form GSTR-2 is clearly a ground to consider the petitioner`s claim of belated returns

1-MADRAS HIGH COURT IN THE CASE OF Kavin HP Gas Gramin Vitrak vs The Commissioner of Commercial Taxes.

2- The respondent issued notice dated 27.04.2022 for a belated claim of ITC. The petitioner submitted that due to financial crisis the petitioner had submitted GSTR-3B physically and the same was already explained to the respondents. So the reversal of input tax for belated claim as per Section 16(4) is not applicable.  

3- The court observed that the petitioner was unable to pay output taxes and so the GSTN not permitted to file GSTR-3B and it is constructed that the petitioner had not filed GSTR-3B online, that resulted the dealer unable to claim his ITC. Hence if the GSTN provided option for filing GSTN without payment of tax or incomplete GSTR-3B, the dealer would be eligible for claiming of input tax credit. 

4- The petitioner had expressed real practical difficulty. The GST Council may be the appropriate authority but the respondents ought to take steps to rectify the same. Until then the respondents ought to allow the dealers to file returns manually.

Held that:- The Hon’ble High Court quashed the impugned orders and directed the respondents to 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 be allowed. 

Case referred/cited :-

Hans Raj Sons Versus Union of India — (P&H)

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CA. Praveen Sharma 

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