GST rectification remedy available for input tax credit disallowance under the circular, with liberty to approach the competent authority.

A special rectification mechanism under the GST circular was available for orders under Sections 73, 74, 107 and 108 where input tax credit had become available under the newly inserted sub-sections (5) and (6) of Section 16 of the CGST Act. The challenge concerned disallowance of input tax credit under an order under Section 73 of the BGST Act on the ground of delay under Section 16(4) of the CGST Act. The Court noted that the petitioner's grievance could be examined by the competent authority if a rectification application was filed under Paragraph 3.5 of the circular, and granted liberty to pursue that remedy instead of invoking writ jurisdiction.

---

---

Issues: Whether the petitioner should be relegated to the statutory rectification procedure under the GST circular and special procedure instead of invoking writ jurisdiction, in relation to disallowance of input tax credit under the BGST Act.

Analysis: The writ petition challenged an order under Section 73 of the Bihar Goods and Services Tax Act, 2017 disallowing input tax credit on the ground of delay under Section 16(4) of the Central Goods and Services Tax Act, 2017. The circular relied upon before the Court provided a special rectification mechanism for orders under Sections 73, 74, 107 and 108 where input tax credit had become available under the newly inserted sub-sections (5) and (6) of Section 16 of the CGST Act. The Court found that the petitioner's contention could be examined by the competent authority if a rectification application was filed under Paragraph 3.5 of the circular.

Outcome: The petitioner was granted liberty to seek rectification before the competent authority, and the writ petition was disposed of.

---