High Court Sets Aside ITC Disallowance Order on Incorrect GSTIN in GSTR-1
Shree Krishna Traders Vs State of U.P. and Another (Allahabad High Court)
Facts:
- Petitioner, represented by Sri Aditya Pandey, challenges proceedings under Section 74 of U.P. GST/CGST Act initiated by respondent no.2.
- Challenge is based on a notice dated 24.12.2022 for the financial year 2017-18 (tax period July 2017 to March 2018).
- Petitioner seeks to quash the order dated 26.7.2023 passed under Section 74 of U.P. GST/CGST Act for the financial year 2017-18.
Observations:
Petitioner refers to a circular dated 2.1.2023 about input tax availed in GSTR-3B, emphasizing paragraph 3(d).
- Circular addresses situations where the supplier incorrectly declares the recipient’s GSTIN in GSTR-1.
- The circular outlines a procedure in paragraph 4 to handle differences in ITC claimed in GSTR-3B and available in GSTR-2A.
- The proper officer of the actual recipient is to inform the tax authority if the wrong GSTIN is mentioned, disallowing ITC claimed in Form GSTR-3B.
- Petitioner argues that the authority should have followed the procedure in paragraph 4 but did not extend the circular’s benefit.
Conclusion:
Petitioner requests setting aside the impugned order and remitting the matter for a fresh decision.
- Respondent’s counsel, Sri Ankur Agarwal, agrees to the proposition.
- The court sets aside the order dated 26.7.2023 and remits the matter to respondent no.2 for fresh orders within one month.
- Fresh decision should consider the circular and any other material relied upon by the petitioner.
- Writ petition is disposed of with these observations.
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