Rectification in GST Returns: Balancing Errors and Fairness

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"RECTIFICATION IN RETURNS" GST returns lack a revision option, and since humans are prone to errors, mistakes will inevitably occur. While the Department's decision to reject rectification might be legally valid, it goes against the spirit of the law. Laws should not be designed to penalize individuals for honest mistakes. Here are a few judgments where courts have favoured the assessee. Research by: Abhishek Raja Ram; 9810638155

1. M/s Vijay Bhogilal - Gujarat High Court (2024) 12 TMI 1399 :: 2024:GujHC:70800-DB Error in GSTR-3B returns for 2018-19: The case is remanded to the respondent authority, allowing the petitioner to apply for Input Tax Credit entitlement by 30-Nov-2021. The Assessing Officer will issue a new order after reviewing the petitioner's application per Sections 16(5) and 16(6) of the GST Act.

2. Jayakrishnan K.S. - Kerala High Court (2024) 14 Centax 350 Where assessee wrongly claimed IGST credit under CGST and SGST in GSTR 3B, revenue authority was directed to consider assessee's rectification application expeditiously and, until then, no coercive action could be taken for wrongly assessed tax.

3. Divya S.R. - Kerala High Court (2024) 14 Centax 179 Where assessee by mistake claimed entire IGST credit under heads of CGST and SGST instead of claiming it under head IGST and filed rectification application before GST Authorities, said application of assessee was to be considered and necessary order was to be passed.

4. NRB Bearings Ltd. - Bombay High Court (2024) 15 Centax 444 Where a clerical error in GSTR-1 return resulted in denial of Input Tax Credit to recipient-respondent without revenue loss, High Court permitted assessee to rectify error to ensure fairness, prioritizing legitimate claims over technicalities in genuine error cases.

5. Anvita Associates - Bombay High Court (2024) 14 Centax 365 Where assessee had failed to disclose certain sales invoices in Form GSTR-1 and, hence, said invoices were not reflected in Form GSTR-2A of its customer disallowing customer to claim ITC, in view of fact that error was inadvertent, assessee was to be allowed to file an application for rectification of relevant Form GSTR-1.

6. Railroad Logistics (India) Pvt. Ltd. - Bombay High Court (2024) 86 GSTL 202 Where assessee made an inadvertent error in submitting GST number of its customer in its form GSTR-1, said dispute being not a case where any loss of revenue would be caused to government as tax had already been paid, rectification was to be permitted to assessee.

7. Kondamma Trading - Madras High Court (2023) 12 CENTAX 108 Where representation was made by assessee to rectify GSTR-3B for shifting ITC from one head to another but department rejected it, rights were available to assessee to correct mistake by filing a rectification application under section 161; assessee should file rectification application.

I hope you will find this useful. Warm Regards, Abhishek Raja Ram 9810638155