GST ITC allowable on Delayed Returns for the FY 2017-18: Jharkhand HC directs Refund of Penalty & Interest

The Jharkhand High Court has ruled that GST input tax credit (ITC) is allowable on delayed returns for the financial year 2017-18. The court directed the refund of penalty and interest charged on the delayed filing of returns. It held that the taxpayer should not be penalized for delays in filing returns, especially when the tax was paid in full. This judgment clarifies that GST penalties should not be imposed in such cases if the tax has been paid before the deadline. The decision is seen as a relief for taxpayers who have faced delays but complied with the underlying tax obligations.