Jayashree Enterprises, Rep. by its Proprietor Kumaravel Kanagaraju Versus Assistant Commissioner (ST), Udumalpet dated 17.06.2026

Analytical Video :

Introduction

The controversy before the High Court revolved around the levy of interest under Section 50(3) of the GST Act on Input Tax Credit (ITC) allegedly wrongly availed and utilised by the petitioner.

The petitioner had claimed ITC in its GSTR-3B returns which exceeded the ITC reflected in GSTR-2A. During assessment, the Department treated the excess ITC as wrongly availed and, since such ITC had also been utilised for payment of output tax liability, levied interest under Section 50(3) read with Rule 88B(3).