Amended input tax credit rule allows regularisation of late GSTR-3B filings and rectification of disallowance

The amended provision inserting section 16(5) was treated as extending the cut-off date and removing the adverse consequence attached to late filing for the relevant financial years, allowing the input tax credit claim to be regularised. Because the disallowance was made solely on the ground that GSTR-3B returns were filed after the due date, the petitioner was entitled to seek rectification of the disallowance order before the appropriate authority.

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Issues: Whether the petitioner was entitled to the benefit of the amended provision inserting section 16(5) so as to regularise the input tax credit claim and seek rectification of the disallowance order.

Analysis: The disallowance of input tax credit had been made solely on the ground that the GSTR-3B returns were filed beyond the due date. The amended provision inserting section 16(5) was noticed as extending the cut-off date and withdrawing the adverse effect for the relevant financial years. In view of that amendment, the petitioner's returns for the relevant tax period were treated as capable of regularisation, and the petitioner was held entitled to seek rectification before the appropriate authority.

Conclusion: The petitioner was held entitled to apply for rectification and to avail the benefit of the amended provision.

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