GSTAT says in case of ITC Mismatch Tax Demand Survives but Interest Must Be Recomputed

The GSTAT held that provisional ITC under the statutory framework applicable to FY 2020-21 remained subject to the conditions under Section 16, including payment of tax by the supplier. It confirmed the tax demand of ₹1,02,012 but directed fresh computation of interest after identifying the unmatched invoices and their relevant dates. Interest attributable to the Rule 36(4) restriction was deleted because it fell outside the show-cause notice.