The Goods and Service Tax Appellate Tribunal (GSTAT),  Bhopal Bench has held that an appeal concerning the denial of ₹3,66,977 in input tax credit (ITC) does not involve a question of law. As the amount in dispute is also below ₹50 lakh, the Bench directed that the appeal be placed before the Vice President of the Bhopal State Bench for further directions.

The bench of Upendra Kumar Singh (Judicial Member) and Sunil K. Das (Technical Member) has not decided whether the taxpayer is entitled to the ITC.

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The appellant/assessee claimed ITC of ₹3,66,977 on purchases made during financial year 2021–22. According to the taxpayer, its GSTR-3B returns for November 2021, December 2021 and March 2022 were filed on December 6, 2022, because of technical reasons and without any mala fide intention.

The taxpayer argued that the filing was only six days after the November 30, 2022 cutoff applicable under Section 16(4) of the Central Goods and Services Tax Act, 2017. It maintained that the purchases were genuine and that it had met the conditions for claiming credit under Section 16(2).

The department issued a show cause notice on February 4, 2024, proposing to disallow the credit and recover interest and penalty. An adjudication order dated December 31, 2024, confirmed the ₹3,66,977 demand, ordered recovery of interest under Section 50 and imposed a penalty of ₹52,673 under Section 73(9) read with Section 122(2)(a). The first appellate authority upheld that order on September 30, 2025, following which the taxpayer approached the GSTAT.

The taxpayer submitted that the appeal raised legal questions about the relationship between Sections 16(2) and 16(4), the denial of ITC despite a short delay, and the imposition of penalty. It also invoked Article 300A of the Constitution and questioned the simultaneous reliance on Sections 73(9) and 122(2)(a).

The department took the position that the appeal was based on facts and did not involve a question of law.

The Bench explained that a question of law arises when a dispute requires the interpretation or application of a statute, rule or legal principle, as distinct from determining what happened on the facts. After considering the parties’ arguments and the appeal records, it concluded that no question of law was involved in this appeal.

The Bench noted that the disputed amount does not exceed ₹50 lakh. Citing the GSTAT President’s order dated May 14, 2026, it directed that the appeal be placed before the Vice President of the Bhopal State Bench for further directions. It did not set aside the ITC demand or uphold it on the merits.

The order also recorded a pending procedural defect. The taxpayer had not complied with an earlier direction concerning Rule 33 of the GST Appellate Tribunal (Procedure) Rules, 2025.

The Bench again directed it to add the “concerned Commissioner” as a respondent in the appeal memorandum and Form APL-05, and said it could seek help from the Bench’s help desk if needed.

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