ITC in One GSTIN Can Be Adjusted in Another If Assessee Has Two GSTINs & Supplier Wrongly Mentioned Another GSTIN | HC

Case Details: My Auto World (Kanpur) (P.) Ltd. v. Union of India - [2024] 167 taxmann.com 440 (Allahabad)

Judiciary and Counsel Details

• Shekhar B. Saraf & Manjive Shukla, JJ.
• Nishant Mishra & Vedika Nath for the Petitioner.
• Parv Agarwal & Sudarshan Singh for the Respondent.

Facts of the Case

The petitioner was engaged in supply of vehicles. The department had issued two GSTINs against single PAN and it communicated both the GSTINs to its suppliers so that the supply of goods may not get interrupted. Later, the department issued demand order for excess ITC availed. It filed writ petition and contended that ITC appearing in GSTR-2A of one GSTIN was adjustable against returns filed on another GSTIN.

High Court Held

The Honorable High Court noted that the petitioner had communicated both the GSTIN to its suppliers so that the supply of goods may not get interrupted. The Court also noted that supplier had declared supply with correct GSTIN of the petitioner. The Court further noted that the CBIC has issued Circular No. 183/15/2022-GST which allows benefit of ITC even if suppliers declared supply with wrong GSTIN of recipient. However, the petitioner’s case was on higher footing as supplier declared correct GSTIN but assessee had two GSTINs.

Therefore, it was held that ITC appearing in one GSTIN would be liable to be adjusted in other GSTIN on which demand was raised and impugned demand order was liable to be quashed.

List of Cases Reviewed

• M/s. Santosh Kumar v. Additional Commissioner and others Writ-Tax No.1185 of 2022, decided on October 11, 2023 – [Para 6] followed.