Input tax credit entitlement is determined by submission date under Sec.16(5) of the CGST Act, overriding earlier deadlines in Sec.16(4).

J U D G M E N T

The petitioner is a registered taxpayer under the provisions of CGST/SGST Act. The challenge raised in this writ petition is against Ext.P3 order passed under Sec.73 of CGST Act by which, the input tax credit was rejected on the reason that the petitioner failed to submit the returns for the month of March 2020 within the stipulated time period under Sec.16(4) of the CGST Act . The challenge is raised against Ext.P3 order mainly on the ground that, in the light of Sec.16(5) of the CGST Act , which is newly introduced, the petitioner is entitled to claim the input tax credit, in view of the fact that the petitioner submitted the return for the month of March 2020 within the cutoff date i.e, 30.11.2021, contemplated under Sec.16(5) of the Act.

2. After hearing the learned counsel for the petitioner and the learned Government Pleader, I find merits in the said submission. It is discernible from Ext.P3 order that, indeed, the petitioner submitted the returns on 02.11.2020 for the month of March 2020 in GSTR 3B. As per Sec.16(5), a tax payer who submits return on or before 30.11.2021 shall be entitled to claim input tax credit covered by the same. This is particularly because, Sec.16(5) starts with the wordings "Notwithstanding anything contained in Sub Sec.4". Therefore, this would mean that, once the assessee satisfies the conditions in Sec.16(5), the timeline stipulated under Sec.16(4) loses its significance. Therefore, an interference is required.

Accordingly, this writ petition is disposed of, quashing Exts.P3 and P4 orders with a direction to the 2nd respondent to reconsider the matter and to grant the benefits under Sec.16(5) of the CGST Act , if the petitioner is otherwise entitled to the same. Necessary orders in this regard shall be passed within a period of three months from the date of receipt of copy of this judgment, after affording an opportunity of hearing to the petitioner.

Sd/-