Delayed GST ITC Claim: Karnataka HC Holds Reply to SCN Not Necessary when Records available with Dept

The Karnataka High Court has provided relief to taxpayers with delayed GST Input Tax Credit (ITC) claims, ruling that a reply to a show-cause notice is not necessary when the records are already available with the tax department. The court emphasized that a hyper-technical approach should not be taken when the fundamental conditions for the claim are met and the information is accessible to the authorities. This decision is a crucial step towards reducing the compliance burden on businesses and promoting a more reasonable approach to tax administration. It ensures that taxpayers are not penalized for procedural lapses when the substance of their claim is valid.