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of <h1>Electronic credit ledger ruled pooled wallet; using CGST and SGST credits instead of IGST for GST payment not wrongful</h1> <h3>Maruthengal Moideen, Smt. Asya K., Faseela, Jaseela, Jamsheer M. and Ijas Ahammed M. Versus State Tax Officer, Under Secretary, Central Board Of Indirect Taxes & Customs, Secretary, State Of Kerala, Deputy Commissioner, (Arrear recovery), Malappuram</h3> HC held that the electronic credit ledger is a pooled wallet with compartments for IGST, CGST and SGST; where credit was availed under CGST and SGST ... Initaition of proceedings u/s 73 of the CGST Act - wrongful availment of Input tax credit - contravention of Section 16(2)(c) of the GST Act - HELD THAT:- It needs to be mentioned that the electronic credit ledger has to be treated as a pool of funds, designated for different types of taxes such as IGST, CGST and SGST. The credit ledger represents a wallet with different compartments of funds. Since the petitioner had availed credit under the CGST and SGST instead of IGST and utilised the same for payment of GST, the benefit of the decision in Rejimon Padickapparambil’s case [2024 (12) TMI 399 - KERALA HIGH COURT] is applicable to the petitioner. The impugned orders having not considered the aforesaid legal proposition, are required to be set aside and a reconsideration be directed. Conclusion - There was no wrong availing of input tax credit in this scenario. Ext.P6 and Ext.P10 orders set aside - the first respondent is directed to reconsider Ext.P6, afresh - petition allowed. The Kerala High Court considered a case where a petitioner, a registered taxpayer under the GST Acts 2017, was alleged to have wrongly availed input tax credit under CGST and SGST instead of IGST. The court noted that the electronic credit ledger functions as separate compartments for different types of taxes. Relying on a previous decision, the court held that there was no wrong availing of input tax credit in this scenario. Consequently, the court set aside the orders determining excess input tax credit and directed a reconsideration by the tax authorities within three months. The writ petition was allowed accordingly.
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