2026-VIL-60-GSTAT-TVP
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  2. 2026-VIL-60-GSTAT-TVP

SGST Tribunal

GST - Input Tax Credit - Eligibility under Section 16(5) - Belated filing of GSTR-3B Returns - Notwithstanding the disallowance under Section 16(4) for belated filing of returns, the appellant contended that the newly inserted Section 16(5) of the CGST/KGST Act, made effective from 1-7-2017, provides relief for taxpayers who file all GST returns up to 30-11-2021 for the Financial Years 2017-18, 2018-19, 2019-20 and 2020-21, and since the appellant had filed the returns on 31-7-2018 and 16-6-2019, well before the prescribed deadline, the denial of input tax credit was unsustainable - Whether the deceased appellant is eligible for input tax credit having regard to Section 16(5) of the CGST/KGST Act inserted vide Section 118 of the Finance Act, 2024 - HELD - Section 16(5) was inserted in the CGST/KGST Act vide Section 118 of the Finance (No. 2) Act, 2024, with effect from 1st day of July, 2017, providing that notwithstanding anything contained in sub-section (4), in respect of an invoice or debit note for supply of goods or services pertaining to the Financial Years 2017-18, 2018-19, 2019-20 and 2020-21, the registered person shall be entitled to take input tax credit in any return filed up to the thirtieth day of November, 2021 - The appellant filed all GST returns on 31-7-2018 for the period July-2017 to Feb-2017 and on 16-6-2019 for the month of March-2018, well before the prescribed date of 30-11-2021 under Section 16(5). The belatedly filed GST returns pertain to the period 2017-18, which is covered under the newly inserted Section 16(5) - The appellant, whether or not deceased, is eligible to the input tax credit claimed in the respective GST returns during the period 2017-18. The Circular No. 237/31/2024-GST dated 15-10-2024 clarifies that the adjudicating and appellate authorities should take cognizance of the retrospectively inserted Section 16(5) while passing orders - The impugned order-in-appeal denying the input tax credit is set aside and the appeal is allowed - GST - Recover the tax demand from the deceased appellant - Procedure under Section 93(1)(b) - Liability of Legal Representative on death of Taxpayer - Discontinued Business - Post-death proceedings - The appellant proprietor had died on 5-9-2024 after the impugned order-in-appeal was passed on 8-12-2022, and the legal heir filed the present appeal on 26-3-2026 claiming to be the legal representative. The respondent sought to recover the tax demand from the deceased appellant without issuing any notice to the legal heir – Whether proceedings could be validly continued against the deceased proprietor without fresh proceedings against the legal representative - HELD - Section 93(1)(b) of the CGST Act provides that if the business carried on by the person is discontinued, whether before or after death, the legal representative shall be liable to pay, out of the estate of the deceased, to the extent to which the estate is capable of meeting the charge, the tax, interest or penalty due from such person. Assessment proceedings cannot validly continue against a deceased proprietor; the required statutory liability attaches to the legal representative, and proceedings must be initiated against the appropriate legal representative after notice and hearing - Where adjudication fails to examine whether heirs continued the business or whether an estate is available for recovery, the statutory basis for liability remains unaddressed - Recovery against the legal heir is permissible in a discontinued business only to the extent confined to the inherited estate. The respondent has no legal basis to recover any dues from the deceased appellant in the absence of any process under Section 93(1)(b) of the CGST Act - The impugned order is set aside as unsustainable in the absence of any action by the respondent under Section 93(1)(b) and the appeals are allowed
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