How to handle Notice on Input GST mismatch between 2A & 3B.

 

The GST department are issuing show cause notice to the taxpayers as the input credit available in GSTR-2A of the year is less than GSTR-3B and asking taxpayer to pay the difference with interest. In this regard, the Kolkata High court in the case of Suncraft energy held that GST department first take action on vendor who had not filed their GST return and in case of no action from GST department buyer cannot be penalized for wrong act of seller.   The Supreme court also confirms the view of Calcutta High Court.  After that we had seen number of high court decisions which rejected GST department  notice on input mismatch.  Top 5 High Court recent judgments of 2024 related to the same.

1. Bombay High Court allowed the rectification of clerical error in GSTR-1 to restore Input Tax Credit, prioritizing fairness over technicalities. NRB Bearings Ltd. vs Commissioner of State Tax (14-Feb-2024)

2. Bombay High Court ruled that if sales invoices were not disclosed in Form GSTR-1, the assessee should rectify it with GST Authorities. Anvita Associates vs Union of India (15-Jan-2024)

3. Bombay High Court: Where assessee made an inadvertent error in submitting GST number of Mahindra & Mahindra (Rajasthan) in its form GSTR-1 instead of correct GST number of Mahindra & Mahindra (Orissa), said dispute was not a case where any loss of revenue would be caused to government as already tax had been paid, therefore rectification was to be permitted to assessee. Railroad Logistics India Pvt. Ltd. vs Union of India (15-Jan-2024)

4. Kerala High Court: Where assessee wrongly claimed IGST credit under CGST and SGST in GSTR-3B, revenue authority was directed to consider assessee's rectification application expeditiously. Jaykrishnan K.S. vs Union of India (03-Jan-2024)

5. Kerala High Court: Where assessee by mistake claimed entire IGST credit under heads of CGST and SGST instead of claiming it under head IGST and filed rectification application before GST Authorities, said application of assessee was to be considered and necessary order was to be passed. Divya S.R. vs Union of India (03-Jan-2024)