Input Tax Credit Claim In Wrong Head

[MAHTAB KHAN]

A taxpayer inadvertently claimed Input Tax Credit pertaining to IGST—under the heads of CGST and SGST in GSTR-3B. The tax invoice was correctly reflecting IGST liability, but while filing the return, the ITC was claimed under the wrong heads due to a clerical error. Will the taxpayer still be eligible to avail the benefit of ITC under section 16 of the CGST Act?

AI Summary

Taxpayer's wrong-head ITC claim under Section 16 remains valid despite clerical error in GSTR-3B filing A taxpayer mistakenly claimed Input Tax Credit for IGST under CGST and SGST heads in GSTR-3B due to clerical error, despite the tax invoice correctly showing IGST liability. Legal experts confirmed ITC remains admissible under Section 16 if substantive conditions are met, as there's no revenue loss to government. Kerala High Court precedent supports this position, ruling such head allocation errors are revenue-neutral and don't justify recovery demands. Courts generally take liberal view on wrong-head ITC claims, treating credits under various heads as common pool, allowing rectification or adjustment in future returns within time limits.