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The Petitioner, while filing a Form GSTR-1 for the month of February 2018, had inadvertently entered the GST registration number of the purchaser in Uttar Pradesh instead of Andhra Pradesh. The Petitioner realized the said error only when the purchaser notified the rejection of the credit, seeking amendment of the return, and threatening legal action. As the Petitioner was not able to revise the return, they preferred a Writ before the Madras HC seeking a direction to the Revenue to rectify the error.
The Madras HC observed that if the requisite statutory Forms such as GSTR-2 and GSTR-1A been notified, the error would have been captured earlier. The HC further noted that time for modification / amendment of GSTR-3B return was extended till the 31 March 2019, however, the Petitioner was unaware that a mistake had crept into its original returns. Accordingly, the Petitioner could not avail the benefit of extension for amendment.
Further, relying upon its own previous judgement in the case of Sun-Dye Chem [2020 VIL 524 (Mad)], the Madras HC held that the Petitioner should not be mulcted with any liability on account of the bona fide, human error and the Petitioner must be permitted to correct the same. Accordingly, the HC allowed the Appeal and directed the Respondents to enable amendment to GSTR-1 return within a period of 8 weeks.
Pentacle Plant Machineries Private Limited vs. Office of the GST Council [W.P. No.1022 of 2020]
In the previous year, the Delhi HC, in the case of Bharti Airtel Limited [2020 (38) GSTL 145] had held that correction mechanism is critical to sustain implementation of GST. The HC had reasoned that there is no cogent reasoning behind logic for restricting rectification only in period in which error is noticed and corrected, and not in period to which it relates. Notably, there is no provision under the CGST Act which would restrict such rectification. Accordingly, it can be seen that the Madras HC has correctly allowed the rectification of bona fide error in filing of Form GSTR-1.
The information provided in this update is intended for informational purposes only and does not constitute legal opinion or advice. Readers are requested to seek formal legal advice prior to acting upon any of the information provided herein. This update is not intended to address the circumstances of any particular individual or corporate body. There can be no assurance that the judicial/ quasi judicial authorities may not take a position contrary to the views mentioned hereinrra quis.
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