In a landmark decision, the Allahabad High Court has granted significant relief for GST taxpayers, especially those with multiple registrations under the same PAN. Here’s what you need to know:
🔑 Key Highlights:
- ITC Adjustment Flexibility: Taxpayers with more than one GST number tied to a single PAN can now adjust any mistakenly claimed Input Tax Credit (ITC) across different GST numbers.
- Example Scenario: Imagine you have two GST numbers, X and Y, under the same PAN. If you mistakenly claim ITC for an invoice linked to GST number X under GST number Y, you’re now allowed to rectify this mistake without facing demand notices due to mismatches.
⚖️ What the Court Decided:
Referencing Circular 183, the High Court ruled that ITC adjustments between multiple GST registrations are permissible, directing tax authorities to accept such valid claims.
📌 Next Steps for Taxpayers:
If you have multiple GST numbers under a single PAN, review your ITC claims to benefit from this recent ruling and avoid potential discrepancies in the future. Stay updated on this and other GST insights to ensure you’re fully informed on your compliance obligations.