A recent Kerala High Court ruling might bring some relief to scores of Indian companies stuck in litigation over rejected input tax credit (ITC) claims under GST after their suppliers failed to pay taxes, experts said. In a case filed by Galaxy Traders, the Kerala High Court held that disallowing credit based solely on the absence of entries in the GSTR-2A form is not warranted. Following the assessment of the evidence provided by the petitioner, the court directed the assessing authority to pass orders in accordance with law. “As there are contrary high court rulings, this entire issue of non-appearance of invoices in GSTR-2A is likely to be settled by the Supreme Court only,” another expert said. Further, in this case, the matter has been remanded to the assessing authority for reexamination and has not been decided on the validity of the provisions, the advocate said.

Source: Economic Times November 03, 2023 17:17 UTC