Following its own batch order, the Court held that where GSTR-3B returns were filed before 30.11.2021, ITC cannot be denied on the ground of limitation under Section 16(4).
The Madras High Court has quashed assessment orders denying Input Tax Credit on the ground of belated returns in two separate cases, applying the retrospective amendment inserting Section 16(5) in the CGST Act which extended the ITC availment deadline to 30.11.2021 for financial years 2017-18 through 2020-21 [M. Subash v. Deputy Commercial Tax Officer; Annamalai and Co. v. Assistant Commissioner of GST, Salem-II].
In M. Subash, Justice Senthilkumar Ramamoorthy dealt with six connected writ petitions involving five assessment orders for periods 2017-18 to 2019-20. The Court noted that all orders had been passed without hearing the petitioner and that in four cases, ITC was denied solely on the ground of belated filing, even though the returns had been filed before 30.11.2021 — the extended deadline under Section 16(5). The Court quashed the orders pertaining to the limitation issue while leaving other issues (ineligible ITC under Section 17(5) and GSTR-1/3B mismatches) for fresh consideration. Bank attachments were also directed to be lifted.
In Annamalai and Co., Justice Krishnan Ramasamy followed the batch order dated 17.10.2024 in W.P.Nos. 25081 of 2023 etc., which had categorically held that following the insertion of Section 16(5) — brought into force retrospectively from 01.07.2017 — registered persons are entitled to claim ITC in respect of GSTR-3B filed on or before 30.11.2021 for the relevant financial years. The department was restrained from initiating proceedings based on the limitation issue and directed to refund any amounts already collected.
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