Case: M/s Divya S. R. v. Union of India [WP(C) No. 38 Of 2024 dated January 03, 2024]
The Hon’ble Kerela High Court held that the GST Department needs to consider the rectification application when the taxpayer had mistakenly claimed the entire ITC under heads of Central Goods and Service Tax and State Goods and Service Tax, instead of claiming it under head Integrated Goods and Service Tax.
Fact
- The financial year is of 2017-18. The taxpayer received IGST Tax Credit through inter-state inward supply of goods. The total amount of IGST Credit as reflected in GSTR 2A was Rs. 1,14,957/-
- The taxpayer while filing the monthly return in GSTR 3B for July, 2017, by mistake claimed the entire input tax credit of Rs.1,14,957/- under the heads of CGST and SGST, instead of claiming it under the head IGST. This mistake had resulted in passing of the assessment order.
- The taxpayer through their counsel, further submits that the taxpayer filed rectification application in GST RFD-01 on 21.12.2023 as provided under the Goods and Services Tax Rules, 2017. However, no decision was taken on the said rectification application by the department.
- Aggrieved by the order, the taxpayer went for the writ before the court.
Held
- The Hon’ble court disposed of the writ, with direction to the department to consider the application filed by the taxpayer and pass necessary orders thereon expeditiously, in accordance with law.
- Further, it emphasized that the taxpayer should be given an opportunity of hearing before final order is passed.
- Until final order is passed on the application as above, no coercive measures shall be taken against the taxpayer for realization of the tax amount assessed.