Input tax credit mismatch between GSTR-3B and GSTR-2A required reconsideration under GST circular relief for early years.

Denial of input tax credit solely because of a mismatch between GSTR-3B and GSTR-2A was held unsuitable for final rejection where Circular No. 183/15/2022-GST provided relaxation for the relevant early GST period and a mechanism for cases of supplier omission or incorrect reporting. The court treated the facts as falling within the circular's scope, set aside the impugned orders, and remitted the matter for fresh consideration by the assessing authority with an opportunity of personal hearing.

---

---

Issues: Whether the denial of input tax credit on account of mismatch between GSTR-3B and GSTR-2A called for interference and reconsideration in the light of Circular No. 183/15/2022-GST dated 27.12.2022.

Analysis: The dispute arose from rejection of input tax credit solely on the basis of mismatch between the return filed in GSTR-3B and the particulars reflected in GSTR-2A. The Circular issued by the Central Board of Indirect Taxes and Customs granted relaxation for the relevant early GST years and prescribed a method for dealing with cases where supplies were omitted or incorrectly reported by the supplier, resulting in non-reflection in GSTR-2A. The facts were treated as falling within the scope of that Circular, and the matter was fit to be re-examined by the assessing authority.

Conclusion: The challenge succeeded, the impugned orders were set aside, and the matter was remitted for fresh consideration in accordance with the Circular, with an opportunity of personal hearing to the petitioner.

---