- Madras High Court set aside the assessment and recovery notice for wrongly computing tax liability by adding excess ITC shown in GSTR-2A.
- It held the officer did not properly consider whether, in reverse charge cases, the relevant invoice for ITC and limitation purposes is the recipient’s self-invoice, not the supplier’s invoice.
- The assessee’s claim that ITC was taken within the time limit after paying RCM tax, and that excess CGST/SGST credit could not lapse without legal basis, was not properly examined.
- The Court remanded the matter for fresh adjudication, with a hearing to the assessee.
Source: a2ztaxcorp.net
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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