Calcutta HC allows rectification of GSTR-1 returns for export invoices after genuine mistake prevented online correction

Calcutta HC allowed petitioner to rectify GSTR-1 returns for October and November 2022 regarding five export invoices. Court found the error was genuine mistake discovered after partial refund order prevented online correction. Following Abdul Mannan Khan precedent, HC directed manual resubmission of corrected GSTR-1 within three weeks, with respondent required to accept and upload details to portal. Court emphasized assessees should not be prejudiced from legitimate benefits due to inadvertent human error and absence of effective statutory correction mechanism.

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Issues:
Rectification of GSTR-1 for export invoices due to inadvertent error.

Analysis:
The petitioner, engaged in the business of supplying minerals and allied products, exported goods with IGST payment but mistakenly marked them as "without payment of IGST" in GSTR-1 for October and November 2022. The error was discovered after a partial refund was granted, prompting the petitioner to seek permission to rectify the invoices.

The State respondents and Customs authorities clarified their inability to allow corrections due to lack of control over the common portal. The Court directed the State respondents to confirm if the mistake was genuine, considering the petitioner's filing of GSTR 3B correctly for the same period.

Upon State respondents' acknowledgment of the mistake's genuineness, the Court relied on a previous judgment to allow rectification manually. The Court emphasized that the petitioner should not be deprived of legitimate credit entitlement due to inadvertent errors.

Following the precedent, the Court directed the petitioner to resubmit corrected GSTR-1 manually within three weeks for uploading on the web portal. The State respondents were instructed to facilitate the process to ensure the petitioner can avail the entitled credit for the export invoices in question.

The petitioner was also directed to clear all taxes and interest determined by the respondents to avail the credit benefit. The writ petition was disposed of with these directions, emphasizing the importance of not prejudicing the petitioner from legitimate entitlements.

Overall, the judgment focused on rectifying a genuine mistake in GSTR-1 to ensure the petitioner's rightful credit entitlements are not compromised, highlighting the importance of procedural fairness and legitimate claims in tax matters.

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