2025 (7) TMI 687 - HC - GST

Challenge to assessment order - petitioner s claim for input tax has been found to be not as per his GSTR-3B returns - It is submitted that the supplier has in all probability now uploaded the Form GSTR-3B which should reflect the entire input tax credit claimed by the petitioner who had received the goods from the supplier - HELD THAT - The assessment order is set aside for the purpose of redoing the assessment in accordance with the Circular. The writ petition stands allowed.

Summary

The Patna High Court, per K. Vinod Chandran, addressed a challenge to the 2017-18 assessment order (Annexure-P/1) and its appellate rejection (Annexure-P/3) concerning denial of input tax credit (ITC) due to discrepancies between the petitioner's GSTR-3B returns and the supplier's GSTR-2A returns, resulting in a tax deficiency of Rs. 34,69,280/-. The petitioner argued that the supplier's GSTR-2A did not fully reflect tax payments, entitling him to the ITC claimed.Relying on CBIC Circular F. No. CBIC-20001/2/2022-GST dated 27-12-2022 (Annexure-P/4), specifically Clause 3(a), the Court noted that where suppliers fail to file GSTR-1 but file GSTR-3B, causing supplies not to appear in recipients' GSTR-2A, the prescribed procedure under Paragraph 4 of the Circular must be followed by the Assessing Officer.The Court held that the Assessing Officer must adhere to this procedure and that the supplier likely has now uploaded the relevant returns. Accordingly, the Court set aside both the assessment and appellate orders to permit reassessment in conformity with the Circular, stating: "The writ petition stands allowed."