2021 (3) TMI 524 - HC - GST

Relief for taxpayer: GSTR-1 rectification allowed for wrong GSTIN entry due to human error, pending notification of forms

HC allowed the petition for rectification of a mistake in GSTR-1, where the supplier had erroneously entered the GSTIN of a purchaser in Uttar Pradesh ... Inadvertent clerical error in GST return - rectification of GSTR-1 - unavailability of statutory enabling forms GSTR-2 and GSTR-1A - entitlement to input tax credit despite GSTIN mismatch - obligation of assessing officer to enable amendment on portalInadvertent clerical error in GST return - entitlement to input tax credit despite GSTIN mismatch - unavailability of statutory enabling forms GSTR-2 and GSTR-1A - Petitioner permitted to rectify the mistaken GSTIN entered in its GSTR-1 and not be deprived of input tax credit on account of a bonafide human error where enabling forms are not notified. - HELD THAT: - The court found that the petitioner had inadvertently entered the GST number of a purchaser in a different State and that the goods had in fact reached the intended recipient. The respondents did not dispute that Forms GSTR-2 and GSTR-1A-by which mismatches would ordinarily be detected and rectified-have not been notified, and that the petitioner was unaware of the error until notified by the recipient. Reliance was placed on the reasoning in Sun Dye Chem, where the court recognised that bonafide inadvertent mistakes in return filings ought to be permitted to be corrected in the absence of an effective statutory mechanism for detection and amendment. Given the absence of the enabling forms and the inadvertent nature of the mistake, the petitioner would be prejudiced if denied correction and consequent credit. The court therefore directed remedial action to permit correction of the return and restoration of the legitimate entitlement to credit, while leaving the mechanics of implementation to the assessing authority. [Paras 5, 6, 7, 8, 9]Writ petition allowed; petitioner permitted to amend GSTR-1 to correct the GSTIN error and the Assessing Officer/R2 directed to enable amendment on the portal with all consequences within eight weeks.Final Conclusion: The writ petition is allowed: in view of the inadvertent error and the non-notification of Forms GSTR-2 and GSTR-1A, the petitioner may rectify the GSTR-1 entry and shall not be deprived of legitimately claimable input tax credit; the Assessing Officer is directed to enable the amendment on the portal within eight weeks. Issues:Rectification of mistake in GSTR-1 return regarding GST number of purchaser, availability of statutory Forms GSTR-2 and GSTR-1A, denial of credit due to mismatch in GST number, permission to rectify inadvertent errors in filing returns.Analysis:The petitioner sought a mandamus to rectify a mistake in the GSTR-1 return where the GST number of the purchaser in Uttar Pradesh was mentioned instead of Andhra Pradesh. The petitioner, engaged in manufacturing, filed returns under the CGST Act. The issue was similar to a previous judgment by the same judge. The counter filed by respondents confirmed the error in the invoices. The absence of Forms GSTR-2 and GSTR-1A hindered error detection, and the petitioner missed the deadline for modification due to unawareness of the mistake.The revenue acknowledged the absence of Forms GSTR-2 and 1A but denied credit due to the mismatch in GST numbers. The petitioner was informed of the error by the recipient seeking amendment and legal action. Referring to a previous case, the judge emphasized the need to allow correction of inadvertent errors to prevent legitimate credits from being denied. The judgment allowed the petitioner to resubmit correct details within a specified timeframe without costs.In conclusion, due to the non-notification of Forms GSTR-1A and GSTR-2, the petitioner was not held liable for the genuine human error and was permitted to rectify it. The judgment directed the Assessing Officer to facilitate the amendment to GSTR-1 within eight weeks. Both respondents' counsels agreed that the order should be implemented by the Assessing Officer.