[download judgment] HC allowed the clarification of returns with 3 important clarifications

Rectification allowed by Court-

The petitioner is supplier of electronic parts. It is supplying good on “bill to – ship to” model to BAL. Invoices were issued and GST was paid. However, while filing GSTR-1 return, inadvertently, the name and address was wrongly entered. As a result of which, the customer was not eligible for input tax credit to BAL. BAL, accordingly, debited the account of the petitioner. The petitioner approached the department seeking rectification of the return for the financial year 2021-22. The same was rejected stating that the rectification application filed in September,2023 is time barred. Such rejection was challenged in writ petition.

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Hon’ble Bombay High Court allows writ petition and set aside such rejection. Directs Revenue to accept online or manual rectified form. It is held:

(i) on purposive interpretation of section 37 and section 39, the proviso thereof cannot restrict inadvertent errors while filing GST returns;

(ii) GST law is based on online module and hence, considering the nature and number of traders in the country, inadvertent errors or omissions cannot be ruled out;

(iii) when there is no loss to the exchequer or no revenue implication, such errors need to be allowed to be corrected;

(iv) follows decisions of the Madras High Court, Orissa High Court and Jharkhand High court on similar facts.

Credit – Advocate Bharat Raichandani

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Star – BOM HC