Madras HC Allows Belated ITC Claims Under Tamil Nadu GST Act

Sunder and Company Vs Union of India (Madras High Court)

The Madras High Court has quashed several assessment orders issued under Section 73 of the Tamil Nadu Goods and Services Tax Act, 2017, related to belated claims for Input Tax Credit (ITC). The court’s decision, in the case of Sunder and Company vs. Union of India, centered on the interpretation of a new provision, Section 16(5), introduced via the Finance Act, 2024. The petitioners’ ITC claims for the financial years 2017-18 and 2018-19 were made before November 30, 2021, which, according to the court, falls within the scope of the new provision. Both the petitioner’s counsel and the Commercial Taxes Department agreed that the new law applied to these claims. Citing a judicial precedent from its own order dated July 20, 2025, in a batch of similar cases, the court concluded that the ITC claims were valid. As a result, the impugned assessment orders were set aside, and the writ petitions were allowed. The court, however, clarified that any tax amounts already paid by the petitioners in relation to the quashed demands would not be refunded, in accordance with Circular No. 237/31/2024-GST dated October 15, 2024.

FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT