ITC Can’t be Denied Due to Discrepancies in GSTR-2A Without Proof of Collusion Between Assessee and Seller | HC

Case Details: Diya Agencies v. State Tax Officer - [2023] 154 taxmann.com 421 (Kerala)

Judiciary and Counsel Details

• • Dinesh Kumar Singh, J.
  • Aji V. Dev, H. Abdul Lathief, Alan Priyadarshi Dev & S. Sajeevan, Advs. for the Petitioner.
  • Smt. Jasmine M.M. GP, Adv. for the Respondent.

Facts of the Case

In the present case, the petitioner’s claim for input tax credit (ITC) had been denied on ground that invoices were not shown in GSTR-2A as taxpayers were only eligible for ITC shown in GSTR-2A. It filed writ petition and contended that ITC could not be denied merely on ground of amount not mentioned in GSTR-2A for which petitioner did had any control.

High Court Held

The Honorable High Court noted that credit should not be denied unless collusion between assessee and seller is proved and genuineness of transaction has to be proved by assessee since burden to prove genuineness of transaction would be upon purchasing dealer. In instant case, the petitioner had to discharge burden of proof regarding remittance of tax to seller by providing evidence.

Therefore, the Court held that the denial of ITC merely on ground that in Form GSTR-2A said tax was not reflected to petitioner was not sustainable and matter was to be remanded back. Also, the Court directed Revenue to give opportunity to petitioner to give evidence in respect of his claim for Input Tax Credit.