GST ITC Dispute Resolution – ₹39.66 Lakh Liability Successfully Saved

A business faced a GST compliance issue arising from the claim of ineligible Input Tax Credit (ITC), which also resulted in adverse action on its GST registration.

Key Challenges

The case involved multiple ITC-related discrepancies. Certain import transactions were not reflected in GSTR-2A, although the corresponding ITC had been claimed in GSTR-3B. In addition, some suppliers had not reported their outward supplies in GSTR-1, while the business had claimed ITC against those transactions.

The case was further complicated by the unavailability of essential supporting documents, including Bills of Entry (BOE), supplier certificates, lorry receipts and e-way bills, which were required to substantiate the ITC claim in line with the relevant GST provisions and Circulars 183/193.

Our Approach

Our GST team conducted a detailed review of the disputed ITC and worked towards obtaining the necessary supporting documentation. We successfully obtained the supplier certificate and advised the business on the appropriate corrective measures.

The disputed ITC was reversed by making the required payment, and necessary rectifications were also undertaken even after the order had been passed, helping to regularise the matter and strengthen the client’s compliance position.

Outcome

Through our strategic approach and effective representation, the matter was resolved with a payment of only ₹8,019, against a potential liability of approximately ₹39.66 lakh.

₹39,66,111 in potential GST liability was successfully saved for the business.

Key Takeaway

Effective GST representation, proper documentation and timely corrective action can help businesses resolve complex ITC disputes and significantly minimise tax exposure.