Rectification of GSTR-1 returns upheld where clerical mistakes existed and software limits could not defeat input tax credit processing.

Rectification of GST returns was permitted where the mistake was clerical or arithmetical, and earlier coordinate bench rulings had consistently rejected the Department's objection. The writ court's direction allowing upload of the rectified GSTR-1 statement was upheld, and software limitations were not accepted as a valid reason to refuse correction. Consequential processing of input tax credit was therefore required, and the appeal failed.

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Issues: Whether the respondent was entitled to upload a rectified GSTR-1 statement for the relevant tax periods and obtain consequential processing of input tax credit.

Analysis: The writ court had already directed permission to rectify the GSTR-1 statement, relying on earlier decisions that recognised correction of clerical or arithmetical mistakes in GST returns. The appeal was found to have no merit, and the same issue had been consistently decided against the Department in earlier coordinate bench rulings. Software limitations were not treated as a valid ground to deny rectification.

Conclusion: The respondent was entitled to upload the rectified GSTR-1 statement, and the Department was to take consequential action regarding input tax credit. The appeal failed.

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