ITC not to be denied only on the ground that the transaction is not reflected in GSTR-2A
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Case Details: |
St. Joseph Tea Company Ltd. vs State Tax Officer |
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Appeal No.: |
WP (C) No. 17235 of 2020 |
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Order pronounced by: |
Kerala High Court |
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Date of Order: |
17-06-2021 |
Brief facts:
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The petitioner (registered under Kerala VAT Act) had migrated to GST regime and applied for registration under GST but could not obtain registration due to technical glitches in GST portal. The petitioner filed WP (C) No. 768 of 2018 and an interim order was passed permitting the petitioner to apply for registration afresh. Accordingly, the petitioner applied and was granted fresh registration w.e.f. 09-03-2018. |
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Even after registration, the petitioner could not comply GST filings for the period 01-07-2017 to 09-03-2018. W.P. (C) No. 768 of 2018 was disposed directing the Department to make appropriate changes in the portal so as to enable the petitioner could comply the filing requirements for 01-07-2017 to 09-03-2018. However, no such changes were made in the portal so that the petitioner could comply with the statutory requirements and file GST returns and remit tax to Government exchequer. |
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This also disabled the petitioner’s customers from claiming ITC and many of them stopped business with the petitioner. The petitioner requested the department to make arrangements to rectify the technical issues and to provide opportunity for filing monthly returns for the period before 09-03-2018. This writ is filed by petitioner on account of non-consideration of his request. |
Observations of the Court:
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The fresh registration on 09-03-2018 have been obtained by the petitioner in terms of interim order issued in W.P. (C) No. 768 of 2018, an opportunity for statutory compliance for the period prior to 09-03-2018 ought to be provided. |
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At the same time, there is substance in the submission made on behalf of the department that it is technically impossible to make changes in the GST portal for providing opportunity for an individual assessee to comply with the statutory requirements from a date prior to its registration. |
High Court Ruling:
In the given circumstances, the only possible manner in which the issue can be resolved is for the petitioner to pay tax for the period covered by provisional registration from 01-07-2017 to 09-03-2018 along with applicable interest under FORM DRC-03 dealing with intimation of payment made voluntarily or made against the Show Cause Notice. If such payment is effected, the recipients of the goods of the petitioner for the period 01-07-2017 to 09-03-2018 shall not be denied ITC only on the ground that the transaction is not reflected in GSTR-2A. It will be open for the GST functionaries to verify the genuineness of the tax so remitted and credit taken.
