Taxpayer Challenges GST Return Error Correction Denial Under Section 97(2) After Ruling Authority Rejects Application

Applicant sought guidance on rectifying GSTR-1 filing mistakes for 2017-18, involving incorrect state code selection and tax liability discharge. WB Authority for Advance Ruling rejected the application, determining the query did not meet statutory criteria under section 97(2) of GST Act. The application was dismissed after providing opportunity for personal hearing, with no further ruling issued.

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Issues involved:
The issue involved in this case is the rectification of mistakes made while filing FORM GSTR-1 on the common portal for the financial year 2017-18, resulting in incorrect discharge of output tax liability.

Summary of Judgment:

Rectification of Mistakes in GSTR-1:
The applicant in this case made mistakes while filing FORM GSTR-1 on the common portal for the financial year 2017-18, leading to incorrect discharge of output tax liability. The errors included wrong selection of State Code, causing the portal to identify an intra-state supply as an inter-state supply and vice versa. Although the applicant correctly accounted for the GST liability in their books of accounts and discharged it through GSTR-3B, they were unable to rectify the mistakes detected in February 2023 during the process of checking the mismatch between GSTR-1 and GSTR-3B.

Application for Advance Ruling:
The applicant filed an application under sub-section (1) of section 97 of the GST Act seeking guidance on how to rectify the mistakes in GSTR-1 showing IGST short GST liability and excess CGST & SGST liability for a specific month in 2017-2018. However, the question raised by the applicant was found not to be covered under the clauses specified in sub-section (2) of section 97 of the GST Act, which are related to various aspects such as classification of goods or services, applicability of notifications, determination of tax liability, input tax credit, registration requirements, and the definition of supply of goods or services.

Decision of the Authority:
After providing the applicant with an opportunity for a personal hearing, it was observed that the question on which advance ruling was sought did not fall under any of the specified clauses in the GST Act. As a result, the application was rejected by the Authority for Advance Ruling, West Bengal. The Authority concluded that there was no reason to accept the application for the pronouncement of a ruling based on the facts presented and the issue raised by the applicant.

In conclusion, the application for rectifying the mistakes in GSTR-1 was rejected by the Authority for Advance Ruling, West Bengal, as the question raised did not align with the provisions specified under sub-section (2) of section 97 of the GST Act.

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