2026-VIL-86-GSTAT-KLK
  1. Home
  2. 2026-VIL-86-GSTAT-KLK

SGST Tribunal

GST - Recredit of excess Input Tax Credit - Jurisdiction of First Appellate Authority to grant recredit – Show cause notice for non-payment of collected tax, non-reversal of ITC on exempted and nil-rated supplies and irregular excess ITC - First appellate authority allowed appeal and granted recredit of excess amounts to taxpayer's electronic credit ledger without recording reasons. Revenue appealed arguing order allowing recredit has no legal sanction - Whether first appellate authority can grant recredit to taxpayer outside refund procedure under Chapter XI and whether order allowing recredit is legally sustainable when no reasons are recorded - HELD - Refund and recredit of tax wrongly paid or paid in excess is not unknown to law. Rule 86(4A) of CGST Rules 2017 explicitly provides that amount of tax wrongly paid or paid in excess if admissible shall be recredited to electronic credit ledger by proper officer - Circular No. 135/05/2020-GST dated 31.03.2020 clarifies that where tax to be refunded has been paid by debiting both electronic cash and credit ledgers refund shall be calculated in same proportion in which cash and credit ledger has been debited for discharging total tax liability – The claim of refund if made in accordance with law cannot be brushed aside. However, FAA did not record any reason as to why it allowed taxpayer to recredit excess amount - FAA computed tax liability at amount significantly lower than what adjudicating authority confirmed but did not explain how this computation was arrived at. Without recording proper reasons first appellate authority cannot grant recredit - Entitlement of taxpayer to recredit must be examined in terms of law and applicable CBIC circulars – The impugned order is set aside lacking proper reasoning and computation basis. Matter remanded to first appellate authority to reexamine entitlement under law and CBIC Circular No. 135/05/2020-GST dated 31.03.2020 and Circular No. 173/05/2022-GST dated 06.07.2022 and pass speaking order and work out fresh computation based on returns and audit reports and pass reasoned order – Ordered accordingly
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Weekly Summary

VIL Video

GST Critical issues: ITC on...
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?