ITC Cannot Be Denied merely Based on GSTR 2A & 3B Discrepancies: Kerala HC

Henna Medicals Vs State Tax Officers (Kerala High Court) Introduction: In a significant ruling, the Kerala High Court has directed the re-evaluation of a case involving input tax credit (ITC) claimed by Henna Medicals Bus Stand Road against an assessment order and a recovery notice. The petitioner sought ITC amounting to Rs. 2,58,116, inclusive of interest and penalty, totaling approximately Rs. 4,58,156. The crux of the matter lies in the disparities between GSTR 2A and GSTR 3B. Analyzing the Court’s Decision 1. Grounds for ITC Denial: The assessment order under scrutiny primarily denie...