Input tax credit denial must consider the extended filing period under CGST/SGST rules before rejection.

Denial of input tax credit for 2018-19 could not be sustained where the claim was rejected without considering the extended time limit under Section 16(5) of the CGST/SGST Act. The petitioner had asserted compliance with that extended period, so the authority was required to examine Section 16(5) before refusing credit under Section 16(4). The rejection was therefore set aside to that extent, and the competent authority was directed to reconsider the claim afresh after hearing the petitioner.

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Issues: Whether the denial of input tax credit for the financial year 2018-19 under Section 16(4) of the CGST/SGST Act could stand without considering Section 16(5) of the Act, and whether the matter required fresh determination.

Analysis: The claim for input tax credit was rejected without reference to Section 16(5), which extends the time limit for claiming input tax credit for the relevant financial years. Since the petitioner asserted compliance with the extended time prescribed under that provision, the rejection could not be sustained without considering its effect. A fresh decision by the competent authority was therefore necessary after hearing the petitioner.

Conclusion: The denial of input tax credit was set aside to that extent, and the competent authority was directed to reconsider the claim afresh after taking note of Section 16(5) of the CGST/SGST Act and after affording an opportunity of hearing.

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