ITC on Car wrongly availed & reversed in GSTR 3B: HC directs reconsideration of further debits  

Vijayshanthi Hardware Vs Assistant Commissioner (ST)(FAC) (Madras High Court) Section 16 of The Central Goods And Services Tax Act, 2017 delves into Input Tax Credit (ITC) and its eligibility criteria along with conditions for claiming the credit. A recent judgment by the Madras High Court sheds light on the implications of wrongly availing ITC and subsequent reversals, emphasizing the importance of compliance. The petitioner’s case revolves around the purchase of a car in the assessment year 2021-2022 and the erroneous availing of Input Tax Credit in relation to it. Despite reversing th...