ITC claim can’t be denied solely on the ground that such claim is not reflected in GSTR-3B

ITC Claim Can’t Be Denied Solely On The Ground That Such Claim Is Not Reflected In GSTR-3B, Where Such Claims Were Referred In GSTR -2A and GSTR-9

1.The Madras High Court allowed the petition in the case of SRI SHANMUGA HARDWARES ELECTRICALS, remanding the case back to the assessing officer for re-consideration of the Input Tax Credit (ITC) claims for the assessment years 2017-2018, 2018-2019, and 2019-2020, which were initially denied because they were not reflected in the GSTR-3B returns, despite being claimed in GSTR-2A and GSTR-9 returns.

2.The Court held that the assessing officer should not deny an ITC claim solely on the basis that it was not claimed in the GSTR-3B returns, without examining all relevant documents and allowing the registered person to substantiate their claim.

3.The petitioner, dealing in electrical products and hardware, contended that nil returns filed in GSTR-3B were erroneous and that they are indeed eligible for ITC, which is reflected in their GSTR-2A and duly claimed in their GSTR-9 annual returns.

4.The High Court emphasized the need for the assessing officer to offer a comprehensive examination of the ITC claim by examining all pertinent documents and providing the petitioner a reasonable opportunity to present their case, including a personal hearing.

5.The judgment mandates that upon the petitioner placing all documents supporting its ITC claims, the assessing officer must reassess the claim and issue a fresh assessment order based on a thorough evaluation of the presented evidence and relevant guidelines.

6.Madras HC – SRI SHANMUGA HARDWARES ELECTRICALS [Writ Petition Nos. 3804, 3808 & 3813 of 2024 and W.M.P.Nos. 4105, 4107, 4110, 4111, 4116 & 4119 of 2024]