GSTAT Rejects Head-Wise ITC Demand

Sansco Technologies faced an alleged excess ITC demand of ₹13,97,613 for FY 2017-18, based on a comparison of GSTR-2A and GSTR-3B. The Tribunal accepted the taxpayer’s undisputed reconciliation, which included IGST paid on imports and showed aggregate eligible credit exceeding credit availed by ₹45,48,864.70. It held that surplus IGST credit could be utilised against the CGST and SGST shortfalls under the statutory utilisation framework. The Tribunal also found serious breaches of natural justice: the original authority had neither granted a hearing nor adequately considered the taxpayer’s submissions. The demand was set aside.