Reconsideration of Denied Input Tax Credit

The Kerala High Court examined whether Input Tax Credit (“ITC”) relating to March 2020 could be denied on the ground that the return was not furnished within the time limit prescribed under Section 16(4) of the CGST Act, notwithstanding the subsequent relaxation introduced through Section 16(5). 

The Court held that where the return had been furnished before the statutory cut-off date contemplated under Section 16(5), the taxpayer was entitled to the benefit of the relaxation. 

Consequently, the Court quashed the impugned order denying ITC and directed the tax authorities to reconsider the matter and grant credit if the petitioner was otherwise eligible.