2023 (12) TMI 231 - HC - GST

Taxpayer allowed to correct December 2017 export supply details in Form GSTR-1 despite expired revision deadline

Punjab and Haryana HC allowed petition seeking correction of Form GSTR-1 for December 2017 export supply details. Following Madras HC precedent in Sun Dye ... Correction of GSTR-1 - furnishing outward supplies in Form GSTR-1 under Section 37 - refund of IGST on zero rated SEZ supplies - time limit for amendment of returns and CBIC circular - manual submission and departmental facilitation for portal upload Correction of GSTR-1 - time limit for amendment of returns and CBIC circular - manual submission and departmental facilitation for portal upload - Petitioner permitted to re-submit corrected Form GSTR-1 for December, 2017 and respondents directed to accept manual submission and upload the corrected details on the portal within four weeks. - HELD THAT: - The Court found that the petitioner was prevented from filing a refund claim because invoice details for supplies to an SEZ unit were entered in the wrong table in GSTR-1 and the portal rejected Statement-4 for refund with an error. Although the departmental circular set a deadline for corrections, the High Court relied on comparable High Court decisions permitting correction where technical or portal-related impediments prevented rectification within the prescribed period. Having regard to the assistance provided earlier by the GST Help Desk identifying the mis-entry and the petitioner's attempts to obtain remedy, the Court exercised its discretionary jurisdiction to permit re-submission of the corrected GSTR-1 for the stated period. The respondents were directed to receive the corrected application manually and facilitate uploading of corrected forms on the web portal, to enable processing of the refund claim, and the exercise was ordered to be completed within four weeks. [Paras 12, 13, 14] Writ petitions allowed; petitioners permitted to re-submit corrected GSTR-1 for December, 2017 and respondents directed to accept manual submissions and upload corrections on the portal within four weeks. Final Conclusion: Both petitions allowed; petitioners may re-submit corrected GSTR-1 for December, 2017 and the department shall receive manual applications and upload corrected details on the web portal within four weeks to enable refund processing. Issues involved:The judgment involves the issues of correcting details in Form GSTR-1 for a specific period and the eligibility for refund under the Central GST Act, 2017.Correction of Form GSTR-1:The petitioner, a registered dealer in auto parts, sought a mandamus to correct details in Form GSTR-1 for December 2017. The petitioner faced difficulties in correcting the form due to errors in entering SEZ invoices, leading to a refund application issue. Despite approaching the GST Help Desk and relevant authorities, the petitioner was unable to rectify the form within the prescribed time limit. The respondent-department denied the correction citing a circular limiting corrections post the deadline of 31.03.2019. The High Court allowed the petitioner to re-submit the corrected Form GSTR-1 for the mentioned period, following precedents where similar permissions were granted.Eligibility for Refund:The petitioner made supplies to an SEZ unit and sought a refund as per zero-rated supply provisions under the Integrated GST Act, 2017. However, due to errors in Form GSTR-1 and the subsequent denial of correction, the petitioner's refund claim was affected. The respondent-department emphasized the importance of timely corrections and valid returns for processing refund claims. The High Court's decision to allow the correction of Form GSTR-1 aimed to address the technical grounds on which the refund application was initially dismissed. The judgment highlighted the petitioner's right to rectify errors under Section 37(3) of the Central GST Act, 2017, ensuring fair treatment in refund claims.Conclusion:The High Court allowed both petitions, directing the petitioner(s) to resubmit the corrected Form GSTR-1 for the specified period. The manual submission of applications and subsequent uploading of corrected details by the Department were mandated within four weeks. This decision aimed to uphold the petitioner's rights to correct errors in the form and facilitate the processing of refund claims under the Central GST Act, 2017.