Illegal Adjustment Not Permitted for Non-Availability of GST Form on Portal

The case of Tikona Infinet Private Limited Vs State of U.P. and Another was adjudicated by the Allahabad High Court.
The case revolves around the legitimacy of adjustments made by Tikona Infinet due to the unavailability of a relevant form on the GST portal.
The court deliberated on Tikona Infinet’s adjustment of input tax credit (ITC) using Form GST-33 instead of the required GST ITC-02, which the company justified due to the latter form’s unavailability on the GST portal.
The Allahabad High Court found that the company had made an illegal adjustment due to the lack of GST ITC-02 on the portal and stated that a working capital shortage cannot bypass the legal procedure.
However, the Court also noted that the GST portal was not online during the relevant period and thus set aside the order dated 17.04.2023, granting liberty to the respondent to pass a fresh order after considering the objections of the petitioner.
The ruling provides an interesting examination of the challenges faced due to non-availability of certain forms on the GST portal and the legal implications of businesses making adjustments to bypass procedure.