Petitioner agrees to pay correct 12% GST rate instead of 5% erroneously paid, can claim Input Tax Credit under Section 16

The Madras HC disposed of a writ petition challenging a GST notice after the petitioner agreed to pay the correct 12% tax rate instead of the 5% erroneously paid from November 2017 to April 2019. The court found no need to examine the merits since the petitioner conceded to pay the remaining 7% difference. Regarding Input Tax Credit claims, the court held that the petitioner could file for ITC at the jurisdictional GST office in Kerala where the company's headquarters is located, and the change in GST registration number due to conversion from partnership firm to private limited company would not bar such claims under Section 16 of the GST Act.

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Issues:
1. Discrepancy in tax payments under the GST regime.
2. Notice issued under Section 61 of the GST Act for scrutiny.
3. Change in GST registration number due to conversion from a partnership firm to a Private Limited Company.
4. Eligibility to claim Input Tax Credit (ITC) and jurisdictional authority for ITC claim.

Analysis:

Discrepancy in Tax Payments:
The petitioner, a dealer under the GST regime, initially paid 12% tax for goods from July 2017 to October 2017. Subsequently, realizing that only 5% tax was applicable based on the goods, the petitioner paid 5% tax from November 2017 to April 2019. Despite filing returns for the relevant assessment years, a notice under Section 61 of the GST Act was issued for scrutiny, leading to discrepancies in tax payments.

Notice under Section 61 of the GST Act:
The Assessing Authority found discrepancies in the petitioner's tax payments, noting the obligation to pay 12% tax instead of 5% for the period from November 2017 to April 2019. An intimation was issued to initiate proceedings against the petitioner under the GST Act, which was challenged through writ petitions.

Change in GST Registration Number:
The petitioner's composition changed from a partnership firm to a Private Limited Company, resulting in a change in GST registration numbers for the Branch Office in Tamil Nadu and Head Office in Kerala. The petitioner argued that this change should not affect the eligibility to claim ITC and requested permission to claim ITC from the jurisdictional State GST Authorities in Kerala.

Eligibility to Claim Input Tax Credit (ITC):
The petitioner expressed willingness to pay the remaining 7% tax to total 12% for the period in question. The court allowed the petitioner to make the payment within two weeks and subsequently claim ITC at the jurisdictional State GST Office in Kerala. The change in GST registration numbers due to the conversion of the petitioner's firm was deemed irrelevant in claiming ITC if eligible under the GST Act.

This judgment emphasizes the importance of accurate tax payments under the GST regime, scrutiny under Section 61 of the GST Act, and the eligibility and process of claiming Input Tax Credit, considering changes in business composition and GST registration numbers.

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