Excess GST ITC Claim on Account of Non-Reconciliation of Information: Madras HC demands 25% Pre-deposit for Hearing

The Madras High Court has demanded a pre-deposit of 25% from a taxpayer who claimed excess GST input tax credit (ITC) due to reconciliation issues. The taxpayer had discrepancies between their GSTR-1 and GSTR-3B filings, which led to an excess ITC claim. The court ruled that the taxpayer must make a pre-deposit of 25% of the disputed amount before the case proceeds further. This decision underscores the importance of proper reconciliation in GST filings and the need for taxpayers to ensure accuracy in their tax returns to avoid penalties and recovery actions.