Facts of the Case: The petitioner filed GSTR-3B returns for FY 2018-19 belatedly on 23.10.2019, instead of the prescribed due date of 20.10.2019. He claimed Input Tax Credit (ITC) of ₹79,05,895 in the said return. The Department rejected the ITC claim by invoking Section 16(4) of the CGST Act, 2017, which restricts availment of ITC after the cut-off date.

Consequently, a demand-cum-show cause notice dated 27.12.2023 and a rejection order dated 26.04.2024 were issued against the petitioner.

Issue: Whether, in light of the retrospective amendment to Section 16 of the CGST Act, 2017 by the Finance (No. 2) Act, 2024, the petitioner was entitled to avail ITC for FY 2018-19 despite belated filing of GSTR-3B

Held: The Court noted that the Finance (No. 2) Act, 2024 inserted Section 16(5) with retrospective effect from 01.07.2017, notified by Notification No. 17/2024-Central Tax, dated 27.09.2024. Section 16(5) overrides Section 16(4) and permits ITC availment for FYs 2017-18 to 2020-21 if claimed in returns filed on or before 30.11.2021.

Since the petitioner filed his return on 23.10.2019, much before the cut-off date, he was entitled to claim ITC of ₹79,05,895.

Accordingly, the impugned rejection order was set aside. The matter was remanded to the Assistant Commissioner for fresh proceedings, if necessary, after affording opportunity of hearing.

Case Name: AMIT JASRASARIA vs. THE UNION OF INDIA AND 4 ORS dated 07.08.2025

To read the complete judgment 2025 Taxo.online 1770