Petitioner availed Lower ITC than GSTR 2A Amounts: conclusion of AO of wrongful ITC availing indicates non-application of mind

Vijaykumar Vs State Tax Officer (Madras High Court)

Petitioner availed Lower ITC Than GSTR 2A Amounts: conclusion of AO of wrongful ITC availing indicates non-application of mind

The recent judgment by the Madras High Court in the case of Vijaykumar vs. State Tax Officer addresses critical issues regarding the availing of Input Tax Credit (ITC) and the discrepancies between self-reported figures and those reflected in the auto-populated GSTR 2A return.

The petitioner, engaged in the supply business, contested an assessment order and subsequent bank attachment notice, claiming ignorance due to being uneducated and computer illiterate. The petitioner argued that discrepancies in claimed ITC versus GSTR 2A figures did not justify the conclusions drawn by the assessing officer, highlighting the remittance of due amounts as evidence of compliance.

The court examined the assessment order and noted the disparity in ITC availed by the petitioner compared to the auto-populated GSTR 2A. It deemed the conclusion of wrongful ITC availing as indicative of non-application of mind. Additionally, the court scrutinized the interest liability for belated return filing, acknowledging the petitioner’s timely remittance of dues.

Please become a member. If you are already a member, login here to access the full content.