ITC claimed after Deadline Prescribed u/s 16(4): Madras HC Orders Reassessment of ITC Claims Considering s. 16(5)

The Madras High Court has ordered the reassessment of Input Tax Credit (ITC) claims filed after the prescribed deadline under Section 164 of the GST Act. The Court directed that these claims be considered under Section 165, which deals with the time limit for claiming ITC. This ruling acknowledges that there may be valid reasons for missing the deadline and provides an opportunity for taxpayers to rectify the situation. It emphasizes the need for a fair process in handling delayed ITC claims, reflecting a balance between compliance and taxpayer relief.