Home GST Madras High Court allows GSTR-3B Filing without Payment of Tax for Claiming ITC [Read Order]

Madras High Court allows GSTR-3B Filing without Payment of Tax for Claiming ITC [Read Order]

Madras High Court allows GSTR-3B Filing without Payment of Tax for Claiming ITC [Read Order]

Madras Excessive Court docket permits GSTR-3B Submitting with out Fee of Tax for Claiming ITC [Read Order]

The Petitioner was issued discover dated 27.04.2022 and the place he was directed to point out trigger why there was a belated declare of Enter Tax Credit score (ITC).

He was additionally directed to reverse the identical as improper declare of ITC.

A number of the points Quoted by Petitioner:

GSTR-3B submitted bodily

The petitioner submitted that as a consequence of monetary disaster the petitioner had submitted GSTR-3B bodily for availing ITC, because the GSTN portal didn’t permit submitting of GSTR-3B on On-line mode as a consequence of Non-Fee of Taxes.

GSTR-2 Non-Operational

As per petioner Submitting Kind GSTR-3B is for avail the enter tax credit score and never for claiming the identical. Kind GSTR-2 was prescribed for declare of ITC, however similar was by no means notified. So the reversal of enter tax for belated declare as per Part 16(4) of TNGST Act will not be relevant, because the submitting of GSTR3B will not be meant for declare of enter tax credit score.

Distinction Between Claiming and availing ITC

The additional rivalry of the petitioner is that the gross sales made to the petitioner and the tax collected from the petitioner had been duly reported by different finish provider by way of their respective GSTR-1 and the petitioner couldn’t declare the identical since Kind GSTR-2 will not be notified.

Therefore, the petitioner has accounted the purchases and credited the tax fee made by way of tax bill, claimed ITC within the books of accounts and availed the identical by way of GSTR-3B filed bodily. Therefore, the allegation of belated declare of ITC itself is fake and deceptive.

GSTR-3B not a Return

GSTR-3B is under no circumstances returned as prescribed in Part 39 of the TNGST Act.

As per Notification No.49 of 2019 (Central Tax), dated 09.10.2019, the Authorities declared that the reconciliation assertion GSTR-3B could also be handled as GSTR-3 in retrospective method and the identical will not be appropriate and the identical is in opposition to the Structure.

Order of Madras Excessive Court docket:

Court docket has held that within the absence of any enabling mechanism, the assessee can’t be prejudiced by not granting ITC.

Therefore if the GSTN offered an possibility for submitting GSTN with out fee of tax or incomplete GSTR-3B, the supplier could be eligible to assert of enter tax credit score. The identical was not offered within the GSTN community therefore, the sellers are restricted to assert ITC on the bottom of non-filing of GSTR-3B throughout the prescribed time. If the choice of submitting incomplete submitting of GSTR-3B is offered within the GSTN community the sellers would avail the declare and decide self-assessed ITC in on-line.

The respondents shall allow the petitioner to file handbook returns each time the petitioner is claiming ITC on the outward provide/ gross sales with out paying taxes. Additional, the respondents are directed to just accept the belated returns and if the returns are in any other case so as and in accordance with legislation, the declare of ITC could also be allowed.

Learn Judgement


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