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 the error affected corresponding ITC. Relying on its earlier ruling in a similar fact situation, the HC held that portal limitations should not defeat statutory compliance when the taxpayer seeks to correct returns to reflect the accurate tax position. The respondent was therefore directed to allow uploading of the rectified GSTR-1 within four weeks, and the petition was disposed of accordingly.

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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.

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