GST Update

 Desk of CA. Praveen Sharma – 1080 Series (CAPS) 

 GSTAT Bengaluru IN THE CASE OF Rodman Technologies Pvt. Ltd. v. Commissioner of Karnataka State GST, Bengaluru

 Rodman Technologies Pvt. Ltd. v. Commissioner of Karnataka State GST, Bengaluru

 Decision: In favour of the Respondent/Revenue

GSTAT Denies Section 128A Waiver for ITC Availed After March 2020

The GST Appellate Tribunal, Bengaluru, has dismissed the appeal filed by Rodman Technologies Pvt. Ltd. and upheld the levy of interest and penalty relating to excess input tax credit.

During scrutiny for FY 2020-21, the Department found that the company had claimed excess ITC of ?5,62,067 in its GSTR-3B for December 2020 compared with GSTR-2A. The disputed amount consisted of IGST of ?68,573, CGST of ?2,46,747 and SGST of ?2,46,747.

The company paid the disputed tax through Form DRC-03 on 9 January 2025 but challenged the interest and penalty. It argued that the ITC arose from debit notes issued during FY 2018-19 and should qualify for relief under Section 128A of the CGST Act.

The Tribunal observed that Section 128A applies only to specified demands under Section 73 relating to the period from 1 July 2017 to 31 March 2020. In this case, the ITC was claimed for the first time in December 2020.

The Tribunal held that the relevant date is the period in which ITC was actually availed, not the date of the underlying debit notes. It also held that a CBIC circular cannot extend the statutory period. Accordingly, the appeal was dismissed and the interest and penalty were upheld.

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CAPS