Introduction: In a recent judgment, the court granted relief to the petitioner, allowing rectification of the Goods and Services Tax Return-1 (GSTR-1) for the fiscal year 2017-2018. The case sheds light on the importance of rectifying bonafide errors in the GST filing process and the court's role in ensuring fair treatment to taxpayers.
Background: The petitioner had sought permission to amend invoice details in the GSTR-1 for the month of December 2019 pertaining to the financial year 2017-2018. The request was made to the jurisdictional officer (respondent no. 2), emphasizing a clerical error in the filing. During the pendency of the application, the petitioner received confirmation from job workers, stating that they had not availed the Input Tax Credit (ITC). Subsequently, an application was filed with the Central Jurisdictional Commissionerate (respondent no. 4) regarding the disallowance of credit on account of a mismatch between GSTR-3B and GSTR-2A.
Legal Arguments: The petitioner argued that there is no provision under the Central Goods and Services Tax (CGST) Act or Rules for rectification of bonafide errors in GSTR-1. They asserted that the error had no revenue implications, making rectification a legitimate request. The petitioner referred to Circular No. 02A of 2022 issued by the State of Maharashtra, highlighting guidelines on Input Tax Credit claims.
Court's Observations: The court, relying on the precedent set in the case of M/s. Star Engineers (I) Pvt. Ltd. vs. Union of India & Ors. dated 14 December 2023, concluded that when there is a bonafide error in filing a return without causing a loss to the government/exchequer, technicalities should not hinder rectification. The court emphasized that legitimate rectifications should not be obstructed due to inadvertent errors.
Court's Decision: Based on the arguments and precedents, the court allowed the petition, granting permission to rectify the GSTR-1 for the fiscal year 2017-2018. The court explicitly kept all contentions related to the second prayer clause open, providing the petitioner with the option to pursue further applications as per the law.
Conclusion: This judgment reaffirms the principle that when there are bonafide errors in filing GST returns and no loss to the government revenue, the courts are inclined to allow rectifications. The decision aligns with the broader objective of ensuring fairness in tax administration and providing relief to taxpayers who inadvertently make errors in their filings. It also underscores the significance of judicial interpretation in shaping the application of GST laws.
Topic-NRB Bearings Ltd. Versus The Commissioner of State Tax, The Deputy Commissioner, SCST, Thane Commissionerate, State of Maharashtra, Bajaj Auto Ltd. (BOMBAY HIGH COURT)
Citation- 2024 TAXONATION 303 (BOMBAY)
Dated-14/02/2024
Comment: