Claim of ITC under wrong head in GSTR 3B due to wrong filing of GSTR-1 by the supplier

The claim of ITC under wrong head in GSTR 3B due to wrong filing of GSTR-1 by the supplier

The issue considered by Madras High Court in Sun Dye Chem on 06-10-2020 in WP 29676 of 2019

In GSTR-1 for 2017-18, CGST and SGST wrongly reflected in IGST by the supplier petitioner. A mistake brought to notice post 31-3-2019 by the customers when the mechanism to rectify GSTR-1 for 2017-18 had lapsed. Due to this mistake wrong, ITC was carried to customers through GSTR-2A. Supplier filed a writ petition so that customers do not lose the benefit of ITC.

Court held that It is nobody’s case that the error was deliberate and intended to gain any benefit, and in fact, by reason of the error, the customers of the petitioner will be denied credit which they claim to be legitimately entitled to, owing to the fact that the credits stand reflected in the wrong column. The error committed by the petitioner is an inadvertent human error and the petitioner should be in a position to rectify the same, particularly in the absence of an effective, enabling mechanism under the statute.

The Court permitted the filing of revised GSTR 3B by reflecting ITC under the correct head manually.