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GST--Input Tax Credit

Failure to File Form GST ITC-02A Due to Glitch in GST Portal--Allowability of ITC

Purnendu Sahai

The learned author seeks to analyse an issue as to whether a bona fide taxpayer can be denied benefit of legitimate claim of ITC on account of having taken separate registration under Rule 11 of the CGST Rules, merely because he could not furnish Form ITC-02A due to technical glitch in the GST portal. The discussion is based on the relevant statutory provisions and judicial pronouncements.

1. Taking of input tax credit in special circumstances

Section 18 of the Central Goods and Services Tax Act, 2017 (in short "the CGST Act") deals with availability of credit in special circumstances.

As per section 18(1)(a) of the CGST Act, a person who has applied for registration under the Act within thirty days the date on which he becomes liable to registration and has been granted such registration shall be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date from which he becomes liable to pay tax under the provisions of the Act.

Section 18(1)(b) of the CGST provides that a person who takes voluntary registration under sub-section (3) of section 25 shall be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date of grant of registration.

It may be noted that clause (a) of sub-section (1) of section 18 deals with taking of input tax credit in case mandatory registration taken by a taxpayer on account of his turnover having exceeded the threshold limit prescribed under section 22 of the CGST Act.

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