Pointwise Reply to GST Notices:
This is my personal view and this post is for general knowledge purpose.
Issue #1: Excess ITC Claimed in Form 3B as compared to GSTR-2A
➡️ ITC was claimed for supplies received.
➡️ You are in possession of goods, invoice, proof of bank payments and actual movement of goods was made and all transactions are absolutely genuine excluding ineligible ITC
✅Prove that all conditions set by Supreme Court in Ecom Gill Coffee Trading Pvt Ltd (2023) are fulfilled
✅ Kerala High Court in Diya Agencies (2023), "ITC cannot be denied to the recipient solely on the ground that transactions are not reflected in GSTR-2A."
Issue #2: ITC Claimed from Non Existent dealers
➡️ Purchase has been made from dealers who were existent at the time of transaction.
➡️The actual movement of goods had taken place.
➡️ The Taxpayer is in possession of valid invoice, e-way bill, proof of payment of taxes along with payment of goods from bank to the supplier.
➡️ All the returns of the supplier were also filed as per your GST Portal and are in the records of the GST Portal.
➡️ The amount of ITC was reflected in GSTR-2A.
➡️ Therefore, all conditions of Section 16(2) were fulfilled while claiming credit.
✅ Calcutta High Court in Gargo Traders (2023) has held that “a recipient of goods/services cannot be denied ITC if supplier becomes non-existent or their registration was cancelled retrospectively.”
✅ Calcutta High Court in LGW Industries (2021) ruled that ITC cannot be denied due to retrospective GST cancellation.
Case sent back for review. Genuine purchases with valid documents before supplier's registration cancellation allow assesses to claim ITC benefit.
I hope these key points will help you in drafting reply.
Thanks
Abhishek Raja Ram