Kerala HC Allows Reconsideration of ITC Claim as Return Was Filed Before Section 16(5) Cut-Off Date

By CA Sandeep Kanoi Goods and Services Tax Judiciary May 30, 2026

TaxGuru Citation: 2026 taxguru.in 6137
Case Name: O. Ibrahim Kutty Vs State Tax Officer (Kerala High Court)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: All High Courts, Kerala High Court

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O. Ibrahim Kutty Vs State Tax Officer (Kerala High Court)

The petitioner, a registered taxpayer under the CGST Act, challenged an order by which Input Tax Credit (ITC) claimed for March 2020 was denied and a penalty was imposed. The denial was based on the finding that the petitioner had failed to submit the return for the relevant month within the period stipulated under Section 16(4) of the CGST Act.

The petitioner contended that relief was available under Section 16(5) of the Act, which provides that a taxpayer who furnishes the return on or before the cut-off date of 30.11.2021 would be entitled to claim ITC. The records showed that the petitioner had filed the return on 18.01.2021, which was before the cut-off date contemplated under Section 16(5).

Considering these facts, the High Court held that the petitioner was entitled to relief. The Court quashed Ext.P6 and directed the first respondent to reconsider the matter and grant Input Tax Credit to the petitioner, provided the petitioner was otherwise entitled to such credit.

FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT

The petitioner is a registered tax payer under the provisions of the CGST Act. The grievance of the petitioner is against Ext.P5 order passed by the 1^st respondent, by which, Input Tax Credit claimed by the petitioner for the period of March, 2020 was declined and penalty was imposed on account of the same, on the reason that the petitioner failed to submit return for the said month, within the period stipulated under Section 16(4) of the Act. Challenge is raised by the petitioner mainly relying on Section 16(5) of the CGST Act, wherein, it is provided that, in case tax payer is furnishing the return within the cut off date as contemplated therein, i.e., 30.11.2021, such tax payer would be entitled to get the Input Tax Credit. In this case, it is discernible that the petitioner submitted the return on 18.01.2021, which is before the cut off date contemplated under Section 16(5) of the Act. In such circumstances, the petitioner is entitled to the reliefs.