2026-VIL-91-GSTAT-LCK
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SGST Tribunal

GST - Availment of Input Tax Credit under incorrect tax head, Invocation of Section 73 for mismatch in ITC reporting - Appellant availed Input Tax Credit reflected as IGST in GSTR-2A but inadvertently claimed under CGST and SGST heads in GSTR-3B due to clerical error - Show cause notice issued under Section 73 alleging incorrect availment of ITC arising from mismatch in GSTR-2A and GSTR-3B - First appellate authority sustained the disallowance of CGST and SGST components of ITC while allowing only the IGST component - Whether Input Tax Credit can be disallowed merely because it was claimed under an incorrect tax head when the substantive eligibility of the credit is not disputed – Validity of invocation of provisions of Section 73 - HELD - Where ITC reflected in GSTR-2A under IGST head is claimed in GSTR-3B under CGST and SGST heads, such availment under incorrect heads constitutes a disallowable item regardless of whether the total amount was accounted for in returns and records. The statutory scheme does not permit reallocation of ITC between different tax heads merely because the taxpayer made an error in reporting. The substantive eligibility of credit cannot override the requirement that the credit must be claimed under the corresponding tax head for the inward supply - The provisions of Section 73 are attracted wherever there is incorrect availment of Input Tax Credit whether arising from intentional misstatement or inadvertent error. The distinction between fraudulent availment and bona fide error does not absolve the taxpayer of the tax demand but may be relevant only for consideration of penalty - Where a taxpayer has claimed ITC under incorrect tax heads, the reversal of such credit and the confirmation of tax liability under the appropriate head is justified. The authorities have correctly applied the law in reversing ITC claimed under CGST and SGST heads when the corresponding credit was available under IGST head - The absence of revenue loss to Government cannot be a ground to condone the incorrect availment of credit under wrong tax heads. Interest and penalty are rightly imposable when ITC is incorrectly claimed and subsequently reversed by the authorities - The disallowance of Input Tax Credit claimed under CGST and SGST instead of IGST, along with the levy of applicable interest and penalty, is upheld – The appeal is dismissed
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