Amendment of GSTR-1 returns allowed for FY 2018-19 despite GST number mismatches being bona fide mistakes

The Bombay HC allowed a petition seeking amendment of GSTR-1 returns for FY 2018-19 to enable Input Tax Credit claims. The court found that notices were issued due to bona fide mistakes in GST number mismatches in the petitioner's returns, not deliberate tax evasion. Since taxes were already paid and no revenue loss would occur, the court directed respondents to permit amendment of GSTR-1 forms within four weeks through online or manual means, following precedent from Star Engineer India Pvt. Ltd.

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Issues involved:
The primary issue in this case is whether the petitioner should be permitted to amend its form GSTR-1 for the financial year 2018-19 to claim Input Tax Credit due to an inadvertent error in submitting the GST number. Another issue is whether the provisions of the Central Goods and Service Tax Act 2017 allow for rectification of such errors without causing any loss of revenue to the exchequer.

Details of the Judgment:
1. The petitioner sought relief under Article 226 of the Constitution of India to amend its form GSTR-1 for the period from April 2018 to March 2019, involving Input Tax Credit of Rs. 25,11,084.
2. The petitioner, registered under the Central Goods and Service Tax Act 2017, made an inadvertent error in submitting the GST number of Mahindra & Mahindra (Rajasthan) instead of Mahindra & Mahindra (Orissa).
3. The petitioner requested to amend the form GSTR-1 after Mahindra & Mahindra (Orissa) received notices due to the mismatch in GST numbers.
4. The petitioner argued that Section 37(3) and 38(5) of the CGST Act do not prohibit correcting inadvertent errors that do not cause revenue loss, citing previous court decisions.
5. The Court referred to a previous judgment where a similar error was rectified to prevent any loss of revenue.
6. The Court held that the petitioner should be allowed to rectify the error in the form GSTR-1 for the financial year 2018-19 within four weeks to enable the client to claim Input Tax Credit.
7. The judgment emphasized the importance of rectifying inadvertent errors to maintain accurate tax records and prevent any undue prejudice to the assessee or third parties.
8. The decision highlighted that the GST regime requires correct data in tax returns to avoid cascading effects and ensure compliance with the law.
9. The Court directed the respondents to permit the petitioner to rectify the form GSTR-1 to ensure the rightful claim of Input Tax Credit without causing any loss of revenue.
10. The judgment concluded by stating that once the rectification is done, the client would be entitled to claim Input Tax Credit, and all contentions of the parties were kept open for further consideration.

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