Must Read- Taxpayer Should Reverse ITC Which Was Claimed in Excess of Allowed Under Rule 36(4) of the CGST Rules: AAR West Bengal

In the case of EASTERN COALFIELDS LTD, AAR West Bengal has held that:

Considering the fact of the case in the light of the aforesaid provisions of the GST Act and rules made there under, we are of the opinion that the applicant has availed of input tax credit in excess of his entitlement prescribed under sub-rule (4) of rule 36.

In view of the above discussions, we rule as under:-

The applicant is not entitled for input tax credit claimed by him on the invoices raised by M/s Gayatri Projects Ltd. pertaining to the period Jan-2020, Feb-2020 and March-2020 for which the supplier has furnished FORM GSTR-1 and FORM GSTR-3B in the month of November’20 and the applicant is, therefore, required to reverse the said input tax credit.

This Ruling is valid subject to the provisions under Section 103until and unless declared void under Section 104(1) of the GST Act.

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