2026-VIL-301-GSTAT-LCK
  1. Home
  2. 2026-VIL-301-GSTAT-LCK

SGST Tribunal

GST – Reporting of Input Tax Credit under incorrect tax head - Demand on account of excess availment of ITC - Appellant inadvertently reported IGST ITC under the CGST and SGST heads while filing Form GSTR-3B for the relevant financial year, which resulted in a mismatch with the credit reflected in Form GSTR-2A - Proceedings under Section 73 of the CGST Act, 2017 resulted in a confirmed demand with penalty - Whether the Appellant wrongly availed IGST ITC under the CGST and SGST heads due to an inadvertent clerical error and whether such incorrect reporting resulted in excess availment or utilisation of ITC - HELD - The claim regarding availability of eligible IGST credit cannot be accepted or rejected merely on the basis of figures appearing in the annual return, and the actual availability, admissibility and utilisation of the credit must be verified from the original records and electronic credit ledger. The figures discussed in the Order-in-Original were not entirely identical to those in the ITC statement furnished by the Appellant, which required proper reconciliation and verification. The Hon'ble High Court considered a similar issue where IGST credit was inadvertently reported by splitting it into CGST and SGST in Form GSTR-3B, and treated the electronic credit ledger as a pool of funds for IGST, CGST and SGST, where the entire balance is to be considered and not individual compartments. The clarification is relevant where the Appellant asserted that the aggregate balance of ITC under all heads was sufficient and that the discrepancy was revenue neutral. The demand cannot be sustained merely because the credit was reflected under an incorrect tax head, and once the principal demand of excess ITC is found unsustainable, the consequential levy of interest and penalty cannot independently survive - The matter is remanded to the proper officer to verify the relevant figures and particulars on the GST portal and extend the consequential benefit – The appeal is allowed on this issue - Eligibility of ITC on purchases where supplier furnished NIL returns - Section 16(2)(c) of the CGST/UPGST Act, 2017 - Appellant claimed ITC on purchases made from a supplier in a particular month and contended that the purchases were genuine, the invoices were reflected in Form GSTR-2A, the supplier was registered and had filed its returns, and payment was made through banking channels - The Respondent contended that verification on the GST portal revealed that the supplier had furnished NIL returns for the disputed period without discharging any corresponding tax liability - Whether ITC on such purchases is admissible when the corresponding invoices are stated to be reflected in Form GSTR-2A - HELD - Mere reflection of an invoice in Form GSTR-2A cannot by itself be treated as conclusive proof of fulfilment of all statutory conditions for availment of ITC. The claim cannot be rejected without examining the invoice, the GSTR-2A details, the genuineness of the transaction, the payment particulars and the applicable statutory conditions. The Hon'ble High Courts held that the clauses of Section 16(2) are cumulative and have to be read conjointly and not independently, that entitlement to ITC is established only after receipt of goods or services and upon the tax charged being actually paid to the Government, and that under Section 155 the burden of establishing entitlement lies on the person claiming credit. The Hon'ble Supreme Court upheld the view that no grounds were made out to declare Section 16(2)(c) unconstitutional or to read it down. The Appellant failed to establish that the tax charged in respect of the supplies was actually paid to the Government, and non-payment of tax by the supplier defeats the entitlement in the absence of fulfilment of the statutory conditions - The appeal is rejected on this issue
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Dr. G. Gokul Kishore

Weekly Summary

VIL Video

GST Adjudication & Appeals Reform
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?