case Law- Input Tax Credit (ITC) is claimed under wrong head by assessee !!!!

 



Kerala_HighCourt settled the position in cases where Input Tax Credit (ITC) is claimed under wrong head by assessee !!!!

In a recent decision, the Kerala High Court in the case of Maruthengal Moideen & ors vs State Tax Officer & ors [W.P.(C) No.20837 of 2024] has delivered a significant judgment regarding the availment of ITC under GST Law.

Key Takeaways:
✅ The ruling dealt with the alleged incorrect availment of ITC under CGST and SGST instead of IGST.
✅The court referred a previous ruling (Rejimon Padickapparambil Alex v. Union of India), emphasizing that such a mix-up in ITC heads should not be seen as an incorrect ITC claim under GST law.
✅It was highlighted that the electronic credit ledger functions like a pool of funds, ensuring no revenue loss occurs whether ITC is claimed under CGST, SGST, or IGST.

Most importantly, the Hon'ble Court reaffirmed that a mere procedural error in availing ITC under wrong heads does not constitute a wrongful claim when there is no revenue loss.

A sigh of relief for taxpayers facing similar issues!!!

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