G.R. Organic Company Vs Commercial Tax Officer
Date: August 2, 2026
Court: High Court
Bench: Madras
Type: Writ Petition
Judge(s)/Member(s): SENTHILKUMAR RAMAMOORTHY
Subject Matter
Tax and Interest Cannot Be Levied on Unutilized ITC for Exempt Supplies
Summary
The impugned order imposing tax and interest on unutilized Input Tax Credit (ITC) reflected in GSTR 2A/2B was set aside by the Court. The primary reason for this decision was that the petitioner, engaged in 100% exempt supplies, did not utilize the I…
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT The petitioner was engaged in effecting 100% exempt supplies during the assessment period 2021-22. Because ITC for said period, was reflected in the GSTR 2A, pursuant to the initiation of proceedings, order dated 25.11.2025 was issued. Said order is impugned herein. 2. Learned counsel for the petitioner submits that ITC was not utilized by the p…