Legal Victory: GST Form Amendment Permitted with Cost, Section 38(5) Correction Allowed After Repeated Filing Errors

HC allowed petitioner's request to amend GSTR-1 Form under Section 38(5) of GST Act, 2017, referencing a prior Division Bench judgment. While permitting manual correction, the court imposed a Rs. 25,000 cost on the petitioner, considering their professional capacity and repeated filing errors. GST authorities were directed to accept the corrected form within specified guidelines.

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Issues involved:
The petitioner sought direction to amend GSTR-1 Form under Section 38(5) of the GST Act, 2017 due to a genuine mistake. The respondent GST authority argued against allowing the amendment, citing a previous opportunity given to the petitioner to correct the mistake. The petitioner relied on a Division Bench judgment for support.

Amendment of GSTR-1 Form:
The petitioner requested the respondent GST authority to permit the amendment of the GSTR-1 Form, either manually or online, under Section 38(5) of the GST Act, 2017, emphasizing the genuine and bonafide nature of the mistake made in the filing process. The respondent, represented by Mr. Kundalia, opposed the request, pointing out that the petitioner had already been given a chance to rectify the error once before, and this was now a repeated offense.

Precedent and Division Bench Judgment:
The petitioner, in support of their plea, referred to a Division Bench judgment dated 31st March, 2023, involving a similar situation where correction of the GSTR-1 Form was allowed. The Division Bench's order directed the appropriate respondent to permit the appellant to file the corrected form manually, with specific timelines for submission and uploading of details. Mr. Kundalia highlighted the distinction that in the cited case, the mistake had occurred only once, unlike the current situation.

Court's Decision and Directions:
Considering the Division Bench judgment and the interests of justice, the High Court disposed of the writ petition by instructing both the State and Central GST authorities to allow the petitioner to file the corrected GSTR-1 Form manually. The authorities were directed to follow the guidelines laid down by the Division Bench in the mentioned order. However, due to the petitioner being a company with access to legal professionals and tax consultants, the Court imposed a cost of Rs. 25,000 to be paid to the High Court Legal Services Committee within ten days, along with proof of payment and the corrected form submission. This decision was made based on the exceptional circumstances of the case, allowing the amendment of the GSTR-1 Form.

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