The timely submission of returns under Sec.16(5) allows taxpayers to qualify for input tax credit despite unmet deadlines specified in Sec.16(4).

J U D G M E N T

The petitioner is an assessee under the provisions of CGST/SGST Act 2017. The grievance highlighted by the petitioner is against the denial of input tax credit claimed by the petitioner pertaining to the year 2019-2020 on the reason that, the petitioner failed to submit the return for the month of March 2020 within in the period stipulated under Sec.16(4) of the CGST Act . Ext.P4 is the order passed under Sec.73 of the CGST Act . The challenge is raised against Ext.P4 order mainly on the ground that, by virtue 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 on 24.10.2020, which is within the cutoff date contemplated under Sec.16(5) of the Act, i.e, 30.11.2021.

2. After hearing the learned counsel for the petitioner and the learned Government Pleader, I find merits in the said submission. In Ext.P4 order itself, it is specifically recorded that the petitioner submitted the returns for the month of March 2020 in GSTR 3B on 24.10.2020. As per Sec.16(5), a tax payer who submits return on or before 30.11.2021 shall be entitled to avail input tax credit covered by the same. Moreover, Sec.16(5) starts with the wordings “Notwithstanding anything contained in Sub Sec.4" and this would mean that, once the returns are filed within the statutory period contemplated under Sec.16(5), the timeline contemplated under Sec.16(4) losses its significance. Therefore, an interference is required as the petitioner is entitled to get input tax credit in the Sec.16(5).

Accordingly, this writ petition is disposed of, quashing Ext.P4 with a direction to the 1st respondent to reconsider the matter and 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.

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