The Madras HC ruled that ITC cannot be denied for delayed GSTR-3B filing when the return was submitted within the extended deadline under Section 16 of the CGST Act.
Saloni Kumari | Apr 11, 2026 |
Extended Deadline Prevails: HC Quashes GST Orders Denying ITC Claim Over Late GSTR-3B Filing
The Madras High Court set aside three GST orders, denying the ITC claim of the petitioner merely on the grounds that the GSTR-3B return was lately furnished under Section 39 of the CGST Act, after the statutory deadline. The court holds that the petitioner had rightly furnished its GST return within the extended deadline of November 30, 2021, as per the amendment introduced to Section 16 of the CGST Act.
The tax authorities had issued three orders dated March 18, 2024, April 29, 2024, and January 27, 2026, against the petitioner, Karthikeyan Electricals, on the grounds that it had claimed ITC (Input Tax Credit) of Rs 17.35 lakh after the statutory deadline of filing Form GSTR-3B under Section 39 of the CGST Act for the financial year 2018-19.
However, the petitioner claimed that its claim was genuine as per the amendment introduced to Section 16 of the CGST Act. Specifically, Section 16(5) of the Act gave the taxpayer authority to claim ITC for the financial years 2017-18, to 2020-21; the condition is that GSTR-3B returns should be furnished on or before November 30, 2021 and in the present case, the petitioner’s return was filed on September 30, 2020, which is within the extended time limit.
When the court analysed the case, it noted that it was a mistake of the tax authorities; they did not consider the important amendment introduced to Section 16 of the CGST Act before issuing the impugned orders. The petitioner had rightly complied with the extended deadline for the GSTR-3B return. Consequently, it is unfair to reject the Rs 17.35 lakh ITC claim merely on the grounds that GSTR-3B was lately furnished under the earlier provision.
Considering the aforementioned findings, the court quashed all three impugned orders dated March 18, 2024, April 29, 2024, and January 27, 2026, and sent the case back to the tax authorities for fresh consideration. The petitioner has been directed to appear before the tax authorities at the scheduled date of hearing and furnish all the relevant documents. Accordingly, the writ petition has been allowed.
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