Time Limit for Filing September GSTR Extended to November 30 Annually from July 1, 2017; ITC Claims Allowed

The Kerala HC held that the time limit for filing the GSTR for September is extended to 30th November each year from 01.07.2017. Petitioners who filed their September returns by this date are entitled to have their ITC claims processed if otherwise eligible. The court noted issues with remission of GST not reflected in returns due to technical reasons and lack of clear proof of payment or receipt of goods but allowed claims where returns were timely filed. The petition was disposed accordingly.

---

---

ISSUES:

Whether Input Tax Credit (ITC) can be availed by recipients when suppliers have remitted GST but not reflected it in their GSTR returns due to technical reasons.Whether recipients who have valid tax invoices and proof of payment of goods and GST can claim ITC when suppliers have not remitted GST on the supply.Whether recipients in possession of invoices but lacking proof of payment or receipt of goods are entitled to claim ITC.The validity and applicability of Circular No.183/15/2022-GST dated 27.12.2022 and Circular No.193/05/2023-GST dated 17.07.2023 regarding bona fide claims for ITC.The retrospective effect and interpretation of the amendment to Section 39 of the CGST Act extending the time for furnishing returns for September from 30th September to 30th November.The constitutional validity of Section 16(2)(c) and Section 16(4) of the CGST Act.

RULINGS / HOLDINGS:

ITC can be availed by the recipient for bona fide scenarios listed in Circulars No.183/15/2022-GST and No.193/05/2023-GST on submitting proof of payment to the Government by the supplier.Petitioners who could have availed benefits under these Circulars but failed to do so within the prescribed time may approach the appropriate GST authority within thirty days to claim relief.The amendment to Section 39 extending the return filing date for September from 30th September to 30th November is procedural and must be given retrospective effect from 01.07.2017.Claims for ITC made before 30th November for returns filed up to that date must be processed and not rejected solely because the return was not filed by the earlier date of 20th October.The constitutional validity of Section 16(2)(c) and Section 16(4) is upheld and the challenge thereto is rejected.

RATIONALE:

The Court relied on the Government's recognition of initial difficulties during the rollout of the GST regime and the issuance of Circulars to address bona fide claims and technical issues in the early years (2017-2019) before Section 16(2)(aa) was introduced.The amendment to Section 39 by the Finance Act 2022 was interpreted as procedural, aimed at easing compliance difficulties, thereby warranting retrospective application to ensure fairness to taxpayers.The Court applied principles of equity and procedural fairness by allowing claims made within extended timelines to be processed, preventing denial of ITC on technical grounds related to return filing dates.The rejection of constitutional challenges to Sections 16(2)(c) and 16(4) was based on the statutory framework governing ITC eligibility and compliance under the CGST Act.No dissenting or concurring opinions were noted; the judgment adopts the reasoning and conclusions from the earlier ruling dated 04.06.2024.

---