HC Remands GSTR-3B vs. GSTR-2A Mismatch to AO
- Background:
- The petitioner is a registered dealer under the CGST/SGST Act, 2017.
- Filed returns from July 2017 to March 2018 in GSTR-3B.
- Received a notice (Form GST ASMT-10) dated 08.07.2020 due to a mismatch between GSTR-3B and GSTR-2A regarding input tax credit claims.
- The assessing authority disallowed input tax credit claimed by the petitioner based on the mismatch, leading to an appeal (Exhibit P-6) which was dismissed.
- Petitioner’s Argument:
- During the initial GST implementation stage, many dealers faced challenges in understanding and filing returns correctly.
- Circular No. 183/15/2022-GST dated 27.12.2022 provided relaxation for financial years 2017-18 and 2018-19.
- The circular addresses scenarios where supplies weren’t reported in GSTR-1 or misclassified, resulting in discrepancies between GSTR-3B and GSTR-2A.
- Petitioner’s case aligns with the parameters detailed in the circular.
- Legal Proceedings:
- Due to the non-constitution of the Tribunal, the petitioner approached the High Court.
- The petitioner requests the Court to treat the writ petition as an appeal.
- The Government Pleader acknowledges that the petitioner’s case may fall under Circular No. 183/15/2022-GST.
- Observation and Conclusion:
- The High Court considers the facts and provisions of the circular.
- It sets aside the impugned orders (Exhibits P-4 and P-6) and remands the matter back to the assessing authority.
- The assessing authority is directed to reconsider the petitioner’s case in light of Circular No. 183/15/2022-GST.
- The petitioner should be given a chance for a personal hearing before finalizing the fresh assessment.
In summary, the High Court’s decision aims to address the GSTR-3B and GSTR-2A mismatch issue by applying the guidelines outlined in Circular No. 183/15/2022-GST, providing relief to the petitioner and ensuring a fair assessment process.
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