Input tax credit mismatch disputes require proper GSTR-2B verification and fresh merits-based adjudication before confirming GST demand.

GST demand based on an alleged excess input tax credit mismatch between GSTR-3B and GSTR-2B was set aside where the Court found, prima facie, that the impugned order did not properly consider the petitioner's factual submissions and supporting records. The assessment had relied on Section 16(2), Rule 36(4), the circular and Section 73 to confirm tax, interest and penalty, but the comparison reflected in the order did not accurately capture the ITC shown in GSTR-2B for the relevant period. The assessment order was quashed and the matter remitted for fresh adjudication on merits after considering the petitioner's submissions and granting personal hearing.

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Issues: Whether the assessment order confirming the GST demand on alleged excess claim of input tax credit could be sustained when the petitioner contended that the GSTR-2B particulars and supporting materials were not properly considered and the matter warranted fresh consideration on merits.

Analysis: The impugned order proceeded on a mismatch between ITC claimed in GSTR-3B and the figures reflected in GSTR-2B and invoked Section 16(2) and Rule 36(4), along with the relevant circular, to confirm the proposal under Section 73 with consequential levy of interest and penalty. The materials placed before the Court indicated that the comparison statement in the impugned order did not properly reflect the ITC shown in GSTR-2B for the relevant period. The Court found, prima facie, that the order had been passed without due consideration of the petitioner's factual submissions and supporting records on merits.

Conclusion: The assessment order was quashed and the matter was remitted to the respondent for fresh adjudication on merits after considering the petitioner's submissions and granting personal hearing.

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