Differences of ITC availed in Form GSTR-3B against Form GSTR-2A: Orissa HC Quashes GST Order on violation of Natural Justice Principle

In a relief to a taxpayer, the Orissa High Court has quashed a GST order that had been passed based on a mismatch between the Input Tax Credit (ITC) claimed in GSTR-3B and the credit visible in GSTR-2A. The court found that the order was passed in violation of the principles of natural justice, as the taxpayer was not given an adequate opportunity to explain the discrepancy. The High Court emphasized that a mismatch between the two forms can occur for various reasons and cannot be the sole basis for denying ITC without a proper hearing. The court remanded the matter back to the assessing officer with a clear direction to provide the assessee with a fair opportunity to present their case and submit documentary evidence to reconcile the difference, ensuring that the decision is made after a thorough examination of the facts.