Once the taxpayer submits the return within the cutoff date contemplated under Section 16(5) of the Act, the timeline in Section 16(4) loses its significance," the Court held.
Nidhi | Mar 26, 2026 |
ITC Claim Cannot be Rejected if Return Submitted Before Cutoff Date: Kerala High Court
The Kerala High Court has allowed ITC benefits to taxpayers, holding that the benefit can be availed if the GST return was filed within the extended due date under Section 16(5) of the Act.
The petitioner, Welcare Hospitality, was denied Input Tax Credit (ITC) because its GST returns were not filed within the given period under Section 16(4) of the CGST Act.
This matter was taken to the Kerala High Court, where the petitioner argued that it is still eligible for the ITC claim as the returns were filed within the extended cut-off date under Section 16(5) of the Act.
The Court examined the order and observed that the GST returns were indeed filed within the extended due date under section 16(5). The High Court agreed with the contentions of the petitioner and said that the cutoff date under Section 16(5) of the Act overrides the normal due date under Section 16(4) of the CGST Act.
“Once the taxpayer submits the return within the cutoff date contemplated under Section 16(5) of the Act, the timeline in Section 16(4) loses its significance,” the Court held.
As a result, the high court quashed the order and directed the GST authority to allow the ITC benefits to the petitioner.
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