Gain insights into the recent Kavin Gas Vitarak case at the Madras High Court, offering potential relief for taxpayers facing ITC denial. Delve into the context, examining changes in Rule 60 and the impact of filing GSTR-3B manually. Understand the limitations of this decision, primarily applicable to FYs 2017-18 to 2018-19, shedding light on the dynamics between GSTR-2 and GSTR-3B for claiming and availing ITC.
In past few days decision in case of Tvl. Kavin HP Gas Gramin Vitrak Vs Commissioner of Commercial Taxes (Madras High Court) is being cited as a relief to the tax payer However in my humble view the same needs to be understood in proper context & I have made attempt in that direction with following observations –
The period under challenge is FYs 2017-18 & 2018-19
SCN issued for denial of ITC for the reason that GSTR-3B was filed belatedly for the relevant periods
Rule 60 (as it stood at the relevant point of time) makes it clear that the “claim of ITC” has to be by declaring the details of inward supplies in GSTR-2
Vide notification no 82/2020-CT dt 10.11.2020, with effect from 01.01.2021 rule 60 was entirely replaced, & as a result of the same, the requirement of filing GSTR-2 was done away with & as a result of the same the claim of ITC could be made by declaring the same in GSTR-3B only
GSTR-3B was filed manually because petitioner was not in position to pay taxes & due to the same was denied filing of GSTR-3B & thus his “claim to ITC” for the relevant period was obstructed
Contention of the appellant that GSTR-2 as prescribed u/r 60 has not been notified has to be understood with respect to the period under challenge, i.e. FYs 2017-18 & 2018-19
Filing GSTR-3B is relevant for “AVAILING ITC & NOT FOR CLAIMING THE SAME”
ITC has been claimed in GSTR-3B rightly by properly accounting the purchases and payments for same in the books of accounts
Therefore in my humble view, this decision will be of limited use only for the period between 01.07.2017 to 31.12.2020 a period during which Form GSTR-2 was there on the statute books BUT was done away with after 01.01.2021
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please note that Under the CGST Act, the provision in Section 38(2)., Section 41(1) , sec.42 and 43, form GSTR-2 and GSTR3 all are stands in force.from 01.07.20217 to 30.09.2022. These section with its relevant rules are express the intention of Legislatures that who interest to claim ITC (see marginal Headings to Sec.41) shall furnish details of inward supply, purchase list at invoice level, as we followed under the TNVAT Act, grants benefit provisionally subject to matching provisions. The concept of TNVAT and CGST are one and the same.The purchase annexure is called GSTR-2; the claim particulars shall be in the return in form GSTR-3 like form I under TNVAT Rules.