GST ITC Claimed under CGST/SGST Instead of IGST during GSTR 3B Filing: Calcutta HC stays Order Directing to Reverse Excess ITC

The Calcutta High Court has provided interim relief to a taxpayer by staying an order that directed the reversal of Input Tax Credit (ITC) which was incorrectly claimed under the CGST and SGST heads instead of the IGST head in their GSTR-3B return. The court observed that this appeared to be a clerical error and not a case of claiming excess credit, as the total ITC amount remained the same. Since there was no actual revenue loss to the government, the court questioned the department's harsh stance of demanding a reversal along with interest. The stay on the order prevents the tax authorities from taking any coercive action against the petitioner pending a final decision. This ruling is a significant relief for businesses, acknowledging that genuine, non-revenue-implicating mistakes in GST return filing should be treated with leniency rather than punitive action.