High court sets aside order denying ITC on basis of non-reflection in GSTR-2A

The petitioner was denied claim of the Input Tax Credit (ITC) on the ground that the details submitted in the petitioner’s return did not tally with that in the GSTR-2A return. As per the show cause notice received by him, it is alleged that that he had made an excess claim of ITC and that this was evident on comparing his GSTR-3B return with the GSTR-2A return.

The counsel of the petitioner explained that he made a genuine purchase from Kirthi Enterprise. He further explained that the relevant invoice was issued by the petitioner’s supplier, M/s.Kirthi Enterprises, but that they had wrongly indicated the GSTIN of the sister concern of the petitioner, namely, Premier Corporations.

The Counsel of GST Department has suggested the petitioner should take recourse to rectification proceedings if the return was wrongly filed by the supplier.

Order of Court:

5. The documents on record, such as invoice dated 20.09.2017 and the GSTR return of Kirthi Enterprises, prima facie indicate that the GSTIN of Premier Corporation was wrongly mentioned by Kirthi Enterprises in the return. If that is indeed the case, the petitioner would be unjustly deprived of ITC. In order to provide the petitioner with an opportunity to redress this grievance, interference with the impugned order is called for.

6. For reasons set out above, the impugned order dated 25.08.2023 is quashed and the matter is remanded to the assessing officer. The assessing officer is directed to provide a reasonable opportunity to the petitioner, including a personal hearing, and thereafter issue a fresh assessment order within a period of two months thereafter. It is also open to the petitioner to file an appropriate petition, if necessary, to set right the error complained of by the petitioner.