GST ITC Denied for Late Filing of GSTR-3B: Calcutta HC Orders Reconsideration in Light of Section 16(5)

The Calcutta High Court has directed the GST authorities to reconsider their denial of Input Tax Credit (ITC) to a taxpayer who had filed their GSTR-3B return late. The court instructed the department to review the matter in light of the newly introduced Section 16(5) of the CGST Act, which may provide an extended timeline for claiming ITC in certain cases. The department had initially denied the credit, citing the time limit prescribed in Section 16(4). By ordering a reconsideration, the High Court has opened the door for the taxpayer to argue that their claim might be admissible under the new, potentially more liberal, provision. This order highlights the evolving nature of GST law and the judiciary's willingness to ensure that taxpayers get the benefit of any subsequent, beneficial amendments, prompting a re-evaluation of cases that were decided based on the earlier, stricter timelines.