Input tax credit circular relief for wrong GSTIN entries was applied, with the matter remanded for fresh consideration.

Where a supplier filed GSTR-1 and GSTR-3B but entered the recipient's GSTIN incorrectly in GSTR-1, the later circular on input tax credit required the discrepancy between GSTR-3B and GSTR-2A to be examined under the prescribed procedure and did not permit denial of ITC merely because proceedings against the wrongly mentioned GSTIN holder were pending. Applying the principle that a beneficial circular issued during pending proceedings should ordinarily be given effect, the HC held the circular available to the claimant, set aside the impugned order, and remanded the matter for fresh decision in light of the circular and the cited judgments.

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Issues: Whether the benefit of the subsequent circular governing input tax credit could be extended where the supplier had declared the supply with the wrong GSTIN of the recipient in GSTR-1, and whether the impugned order should be set aside and the matter remanded for fresh consideration.

Analysis: The circular issued during the pendency of the writ petitions specifically addressed cases where the supplier filed GSTR-1 and GSTR-3B but mentioned the recipient's GSTIN incorrectly in GSTR-1. It provided that the discrepancy in ITC between GSTR-3B and GSTR-2A should be handled through the prescribed procedure and that the actual recipient's entitlement to ITC should not be denied merely because action against the wrongly mentioned GSTIN holder was pending. The Court also relied on the principle that a beneficial circular introduced during the pendency of proceedings should ordinarily be given effect, and followed prior decisions adopting the same approach.

Conclusion: The benefit of the circular was held available, the impugned order was set aside, and the matter was remanded to the authority for fresh decision after considering the circular and the judgments relied upon.

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