HC Upholds Excess ITC Demand on GSTR-3B and GSTR-2A Mismatch

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  • Last Updated on 17 May, 2026

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GSTR-3B and GSTR-2A Mismatch

Case Details: Meethal Thotty Ahamedali vs. State Tax Officer [2026] 185 taxmann.com 768 (Kerala)

Judiciary and Counsel Details

  • Ziyad Rahman A.A., J.
  • Smt. K. Krishna, Achyuth Menon & Smt. Anna Anto, Advs. for the Petitioner.
  • Smt. Reshmitha R. Chandran, Sr. G.P. & P. Anirudhan, Adv. for the Respondent.

Facts of the Case

The petitioner challenged an order confirming demand towards excess input tax credit (ITC) on account of a mismatch between GSTR-3B and GSTR-2A for the relevant period. A notice under ASMT-10 was initially issued, pointing out discrepancies in the return filed, including differences between GSTR-3B and GSTR-2A, to which the petitioner sought time to submit a reply. Subsequently, a SCN was issued and an adjudication order confirming demand was passed. The petitioner contended that tax had been duly paid in respect of all transactions. It was further submitted that later certificates were obtained from suppliers confirming payment of tax along with relevant transaction details, which required reconsideration of the demand. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that the records disclosed serious lapses on the part of the petitioner in not responding appropriately to statutory notices issued under Section 73 of the CGST and Kerala GST Act read with Section 16 and in not furnishing required invoice-wise details during assessment proceedings. The Court observed that although the petitioner sought to rely on certificates issued by suppliers confirming payment of tax, such material was not produced within the permissible assessment stage, despite the adequate opportunity granted under the statutory scheme governing adjudication under Section 73. It was further held that the said certificates were obtained much later, and the writ petition itself was filed after an inordinate delay, thereby attracting the principle of finality of assessment under the GST framework and limiting interference under Article 226 of the Constitution of India. It was concluded that writ jurisdiction cannot be invoked.

List of Cases Referred to

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied