Input tax credit mismatch under GST circular may require fresh assessment where supplier proof and supporting records are available.

For initial GST years, Circular No. 183/15/2022-GST permits the proper officer, where input tax credit claimed in Form GSTR-3B does not match Form GSTR-2A within the prescribed monetary limit, to seek a supplier's certificate confirming supply and tax payment. In light of this circular and the petitioner's invoices, tax payment records and other supporting materials, the Kerala HC held that the assessment could not be sustained without reconsidering the ITC claim. The matter was remanded to the assessing authority for fresh consideration after examining the circular and any additional documents produced by the petitioner.

---

---

Issues: Whether the assessment order rejecting the petitioner's claim required to be set aside and the matter remanded for fresh consideration of the input tax credit claim in the light of Circular No. 183/15/2022-GST dated 27.12.2022 and the documents to be produced by the petitioner.

Analysis: The dispute related to the financial year 2017-18 and the petitioner had produced invoice, tax payment and other supporting materials. The circular issued by the Central Board of Indirect Taxes and Customs for the initial GST years permits the proper officer, in cases of mismatch between ITC claimed in Form GSTR-3B and the credit available in Form GSTR-2A within the prescribed monetary limit, to call for a supplier's certificate confirming supply and tax payment. In view of the available material and the petitioner's willingness to produce the supplier certificate and further evidence, the assessment could not be sustained without reconsideration of the claim on the basis of the circular and additional documents.

Conclusion: The assessment order was set aside and the matter was remanded to the assessing authority for fresh consideration and a new order in accordance with law after examining the circular and the materials produced by the petitioner.

---