GST refund claim rejected due to clerical error, highlighting challenges in rectifying GST returns

The petitioner, a registered dealer under the GST Act, sought a refund of CGST and SGST along with interest. Due to a clerical error in reporting sales figures, the refund claim faced rejection despite correctly reporting tax payable. The Appellate Authority and High Court rejected the claim. The petitioner highlighted the challenges in rectifying errors in GST returns. The case emphasized the need for an operational GST Appellate Tribunal for timely dispute resolution. The High Court issued notice to the respondents for further hearing on 29th March 2022.

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Issues:
1. Refund of CGST and SGST along with interest.
2. Setting up of GST Appellate Tribunal.

Analysis:
The petitioner, a registered dealer under the GST Act engaged in manufacturing and trading of footwear, filed a writ petition seeking a refund of Rs. 70,47,234 under the CGST and SGST Act, along with interest. The petitioner also requested directions to set up the GST Appellate Tribunal expeditiously. The petitioner applied for a refund for the period April 2019 to September 2019, but due to a clerical error, mistakenly reported sales as Rs. 10,18,10,097 instead of Rs. 1,01,81,097 in the monthly return. Despite correctly reporting the tax payable as Rs. 5,09,055, the refund claim was at risk of rejection due to the discrepancy between the adjusted total turnover in forms GSTR-3B and GSTR-01.

The petitioner explained to the respondents that the discrepancy arose from a typographical error, with no mechanism available to revise the return. After a show cause notice and subsequent appeal, the refund claim was rejected without reason. The Appellate Authority also rejected the claim, leading the petitioner to approach the High Court through the writ petition. With the GST Appellate Tribunal not functioning, the petitioner sought relief from the Court. The Court issued notice to the respondents, who were given time to file their counter-affidavits. The case was listed for further hearing on 29th March 2022. The matter highlights the challenges faced by taxpayers in rectifying genuine errors in GST returns and the importance of an operational GST Appellate Tribunal for timely resolution of disputes.

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