ITC and RCM Mismatch in GSTR-3B: Madras HC Grants Hearing Opportunity with 25% Disputed Tax Deposit

The Madras High Court granted an opportunity to the petitioner to contest a mismatch between Input Tax Credit (ITC) and Reverse Charge Mechanism (RCM) liabilities in the GSTR-3B returns. The court directed a rehearing of the case upon a 25% deposit of the disputed tax amount. The petitioner argued that mechanical mismatches in returns led to incorrect tax liability determination. The court emphasized fairness in tax procedures and allowed reconsideration to ensure the taxpayer's grievances are addressed. This decision highlights judicial intervention in rectifying procedural irregularities and reaffirming taxpayer rights. Experts believe this ruling demonstrates the courts' commitment to upholding transparency and justice in GST compliance while ensuring taxpayers are not unduly penalized for technical errors.