2024 (2) TMI 853 - HC - GST

Tax Authorities Must Allow GSTR-1 Invoice Amendment for Clerical Errors Under Fair Administrative Principles

HC allowed petitioner's writ mandamus to rectify GSTR-1 for 2017-2018, permitting amendment of invoice details due to clerical error. Court kept ... Rectification of bonafide error in return - permissibility of amendment to GSTR-1 - no loss of revenue principle - mismatch between GSTR-3B and GSTR-2A - input tax credit entitlement - certificate from chartered accountant certifying discharge of GSTRectification of bonafide error in return - permissibility of amendment to GSTR-1 - no loss of revenue principle - Petitioner permitted to rectify GSTR-1 for the period 2017-2018. - HELD THAT: - The Court held that where a bonafide error occurred in filing GSTR-1 and no loss to the revenue is caused, technical impediments should not prevent legitimate rectification. Relying on the decision in M/s. Star Engineers (I) Pvt. Ltd., the Court observed that inadvertent filing errors which would otherwise have cascading adverse effects ought to be remedied. Applying that principle to the present facts, and having regard to the petitioner's steps to obtain confirmation and a certificate from its chartered accountant that GST was discharged, the petition was allowed to the extent of permitting correction of GSTR-1 for the specified period. [Paras 6, 7, 8]Allowed - petitioner permitted to rectify GSTR-1 for 2017-2018.Input tax credit entitlement - mismatch between GSTR-3B and GSTR-2A - leave to apply for determination of ITC claim - Claim for entitlement of input tax credit (prayer (b)) not decided and left open. - HELD THAT: - The Court expressly refrained from adjudicating the petitioner's claim that respondent no. 4 is eligible to avail input tax credit and left all contentions on that prayer open. The Court recorded that if the petitioner wishes to pursue prayer (b) it may make an appropriate application as permitted by law, indicating that the substantive determination of ITC entitlement and any issues arising from mismatch between GSTR-3B and GSTR-2A remain undetermined in this petition. [Paras 9]Contentions on prayer (b) kept open; petitioner may make an application as permissible in law.Final Conclusion: The petition is allowed to the extent that the petitioner is permitted to rectify the GSTR-1 for the period 2017-2018; the separate claim regarding entitlement to input tax credit is left open for determination if the petitioner chooses to pursue it in accordance with law. Issues involved:The petition sought a writ of mandamus to rectify GSTR-1 for 2017-2018 and to declare eligibility of respondent no. 4 for ITC amounting to Rs. 64,36,188 due to a clerical error by the petitioner.Rectification of GSTR-1:The petitioner requested to amend invoice details in GSTR-1 for the period 2017-18, citing a need to rectify a clerical error. The petitioner approached the jurisdictional officer to allow the amendment, supported by confirmation from job workers that no input tax credit had been availed. Despite no proceedings initiated against respondent no. 4, the petitioner sought rectification based on guidelines issued by the State of Maharashtra. The petitioner argued that there was no provision under the CGST Act for rectification of bonafide errors in GSTR-1, emphasizing that there was no revenue implication. Relying on a previous court decision, the petitioner contended that legitimate rectification should be allowed without technical hindrances.Decision:The High Court allowed the petition, permitting the petitioner to rectify the GSTR-1 for the period 2017-18. The court kept all contentions open regarding the eligibility of respondent no. 4 for ITC, allowing the petitioner to make further applications if permissible by law. The judgment was disposed of with no costs incurred.