2023 (12) TMI 511 - HC - GST

Rectifying GSTR-1 errors affecting ITC: taxpayer allowed to re-upload corrected returns despite GST portal limits, within four weeks.

The dominant issue was whether a registered person could be permitted to rectify and re-upload GSTR-1 for specified tax periods on the GST portal where ... Rectification of GSTR-1 - inadvertent human error - input tax credit entitlement - rectification under Section 37(3) provisos - absence of notified Forms GSTR-2/GSTR-1A as disabling mechanism - judicial discretion to permit corrective uploadingRectification of GSTR-1 - inadvertent human error - input tax credit entitlement - absence of notified Forms GSTR-2/GSTR-1A as disabling mechanism - Petitioner permitted to upload rectified GSTR-1 statements for specified periods and to claim corresponding input tax credit - HELD THAT: - The Court found that the petitioner had committed inadvertent errors in filing GSTR-1 for August 2017, November 2017, December 2017 and January 2018 and had missed the statutory window for rectification because it was unaware of the notification extending time. Having regard to the absence, at the relevant time, of notified enabling forms (GSTR-2/GSTR-1A) which would have facilitated detection and correction of mismatches, and to the line of decisions permitting rectification where no mala fides are alleged, the Court exercised its supervisory jurisdiction to permit corrective uploading. The Court relied on the principle that bonafide human errors should not deprive a party of legitimate input tax credit where the statutory mechanism for seamless correction was not effectively available, and directed a time-bound procedure for the petitioner to upload rectified GSTR-1 and for the respondents to process and enable the auto-population and grant of the claimed input tax credit. [Paras 7, 9]Writ petition allowed; petitioner permitted to upload rectified GSTR-1 within four weeks and respondent directed to process and enable the claimed input tax credit within the prescribed short time-frames.Final Conclusion: The writ petition is allowed: the petitioner is authorised to upload rectified GSTR-1 for the periods August 2017, November 2017, December 2017 and January 2018 within four weeks; the respondent is directed to upload and process the rectified statements and enable the petitioner to avail the claimed input tax credit within the time periods ordered. Issues involved:The writ petition challenges an order seeking permission to rectify GSTR-1 statements for specific periods involving Input Tax Credit.Details of the judgment:The petitioner made an inadvertent error in filing GSTR-1 statements for certain periods, leading to the need for rectification. The petitioner was unable to rectify within the extended time period due to lack of awareness of a relevant notification. The respondent argued that opportunities for correction were provided but not utilized by the petitioner. The petitioner claimed ignorance of the notification and submitted a representation, which was rejected by the respondent through the impugned order.Court's analysis:The court noted the mistake made by the petitioner and their inability to avail rectification opportunities due to lack of notification awareness. The court referred to a previous case where a similar petitioner was allowed to rectify GSTR-1 statements, emphasizing the importance of rectification in cases of inadvertent errors without malafides.Legal provisions considered:The court referred to Section 37 of the Act regarding rectification of errors in submitted details and the time frame for such rectification. It highlighted the importance of allowing rectification where errors are inadvertent and not deliberate, ensuring proper reporting of turnover and input tax credit.Decision and directions:In line with previous decisions and considering the circumstances, the court directed the respondent to permit the petitioner to upload the rectified GSTR-1 statement within a specified time frame. The court emphasized the need to enable rectification for genuine errors and ensure proper reporting of tax-related details.Conclusion:The writ petition was disposed of with the direction for rectification of GSTR-1 statements within specified time frames, emphasizing the importance of allowing rectification for inadvertent errors without attributing malafides to the assessee.