Input Tax Credit was denied solely due to delayed return filing for 2018-2019, retrospective insertion to Goods and Services Tax enactments by Finance No. 2 Act 2024 and Circular No. 237/31/2024-GST clarified entitlement, making Input Tax Credit available, matter remanded for fresh consideration as per law {Kabriyal Rajan vs. Supertintendent, CGST & Central Excise [2026] 182 taxmann.com 184 (Madras)}
Facts:
- The petitioner’s Input Tax Credit for FY 2018–19 was denied.
- The denial was solely on the ground of delayed filing of GST returns beyond the time limit prescribed under Section 16(4) of the CGST Act.
- Subsequently, Section 16 was retrospectively amended by the Finance (No. 2) Act, 2024.
- Circular No. 237/31/2024-GST was also issued, clarifying eligibility of ITC in such cases.
Issue:
- Whether ITC denied earlier only due to delayed return filing for FY 2018–19 can be allowed in view of the retrospective amendment and clarificatory circular.
Held:
- The Madras High Court held that:
- The retrospective amendment and the clarificatory circular grant entitlement to ITC.
- Since ITC was denied only on technical grounds of delay, the matter requires reconsideration.
- Accordingly, the Court set aside the earlier order and remanded the matter to the adjudicating authority for fresh consideration in accordance with the amended law and circular.
