ALIKUNJU KURUTTIKKAVIL SHEREEF v. STATE OF KERALA & ORS.

Introduction

This judgment highlights the impact of the newly inserted Section 16(5) of the CGST Act, which extended the time limit for claiming Input Tax Credit (ITC) for the financial years 2017-18 to 2020-21. The Kerala High Court held that where ITC had been denied solely on the basis of the limitation prescribed under Section 16(4), the authorities must reconsider the claim in light of Section 16(5) after granting an opportunity of hearing.

Background of the Case

The petitioner challenged an order dated 15.04.2024 whereby the department denied Input Tax Credit (ITC) for the financial year 2018-19.