2026-VIL-264-GSTAT-PYG
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SGST Tribunal

GST - Validity of Order of the FAA passed ex parte without addressing the core claim in the appeal - Requirement of a reasoned order under Section 107(12) of the CGST/UPGST Act, 2017 - Ex parte order confirmed demand on the mismatch between Input Tax Credit in Form GSTR-3B and Form GSTR-2A and on short payment of output tax - The FAA dismissed the appeal as the Appellant did not appear for the hearings and filed only self-prepared charts - Whether the FAA erred in dismissing the appeal on non-appearance contrary to Section 107(12) - HELD - Section 107(11) and (12) require the order of the Appellate Authority to be in writing and to state the points for determination, the decision thereon and the reasons. The FAA had perused the adjudication order and the portal comparison chart but did not deal anywhere with the claim regarding preceding year credit, which goes to the root of the matter - The appellate authority cannot dismiss an appeal merely because the appellant did not appear and must examine the grounds in the appeal memo and pass a reasoned order. Though Section 113(1) empowers the Tribunal to remand, the demand related to a single financial year, the entire material was on record and the only ground of demand was the mismatch, so the Tribunal proceeded to decide on merits - The order of the FAA is a non-speaking order and cannot be sustained in law - Applicability of the CBIC Circular on Input Tax Credit discrepancies between Form GSTR-2A and Form GSTR-3B for the earlier financial years - Requirement of Chartered Accountant or supplier certificates - The FAA relied on the Circular to hold that credit claimed in excess of Form GSTR-2A can be allowed only after verification of tax payment and that certificates were required - HELD - The Circular is a limited relaxation applicable to discrepancies pertaining to two earlier financial years arising from supplier-side failures, such as filing Form GSTR-3B but not Form GSTR-1, omitting an invoice, reporting a business to business supply as business to consumer or entering a wrong GSTIN. The comparison in the present case was between Form GSTR-3B and Form GSTR-2A of one later year alone. There was no supplier reporting error since the suppliers had uploaded the invoices and the credit of the preceding year was fully reflected in Form GSTR-2A - The difference arose because the Appellant as recipient availed omitted credit of the earlier year within the permitted time, which is not a supplier mismatch of the kind covered by the Circular. Even if the Circular were applied, the entire disputed amount across all suppliers was below the threshold above which a Chartered Accountant certificate is required - The FAA erred in relying on the Circular and in treating a recipient's claim of earlier year credit as a supplier default - Demand based solely on mismatch between Form GSTR-2A and Form GSTR-3B - Availment in a later year of Input Tax Credit omitted earlier, within the time allowed by Sections 16(4) and 39(9) of the CGST Act, 2017 - The demand rested only on the difference between the auto-populated Form GSTR-2A and Form GSTR-3B of a single year, while the Appellant contended that credit of the preceding year omitted earlier was claimed in the returns of the later year - Whether the Input Tax Credit claimed is a valid availment of omitted credit of the earlier year - HELD - The CBIC Press Release clarified that Form GSTR-2A is a taxpayer facilitation and does not affect the ability to avail credit on self-assessment in accordance with Section 16. The requirement of reflection of the invoice in the recipient's statement under Section 16(2)(aa) was inserted only with effect from 01.01.2022 and does not apply to the period. A demand founded only on such a mismatch without verifying the taxpayer's explanation cannot be sustained - The apparent excess arose only because the returns of one year were compared with Form GSTR-2A of that year alone. The SCN made no allegation of ineligibility under Section 16(2) or Section 17(5) or of suppression - The claim is a valid availment of omitted credit, the order of the FAA and the adjudication order are set aside to the extent of the credit demand, the tax, interest and penalty thereon are quashed - The output tax accepted and paid is not disturbed - The appeal is partly allowed
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