Demand notices based on GSTR 2A and GSTR 3B ITC discrepancies cannot be upheld without investigating the supplier whose invoices are missing from GSTR 2A.
Hon’ble Calcutta High Court in Suncraft Energy Pvt Ltd delivers a significant and favorable judgment on ITC mismatch notices. It has been held that the demand notices based on GSTR 2A and GSTR 3B ITC discrepancies cannot be upheld without investigating the supplier whose invoices are missing from GSTR 2A.
Allegations of non-payment of tax by the supplier and denial of ITC u/s 16(2)(c) of the Act should not be made without a thorough investigation of the concerned supplier.
The Court’s decision is influenced by judgments from the Hon’ble Supreme Court in the Bharti Airtel and Arise India Ltd cases.
The copy of the order is as under:
