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2021 (3) TMI 494 - HC - GSTSeeking rectification of Form GSTR-3B for the month of May, 2019 - HELD THAT - The aforesaid issue is no longer res-integra in view of the decision of the Delhi High Court in the case of BHARTI AIRTEL LIMITED VERSUS UNION OF INDIA AND ORS. 2020 (5) TMI 169 - DELHI HIGH COURT where it was held that the rectification of the return for that very month to which it relates is imperative and, accordingly, we read down para 4 of the impugned Circular No. 26/26/2017-GST dated 29.12.2017 to the extent that it restricts the rectification of Form GSTR-3B in respect of the period in which the error has occurred. Thus, the writ applicant should be permitted to rectify the Form GSTR-3B in respect of the relevant period - the respondent No.4 is directed that on filing of the rectified Form GSTR-3B, it shall, within a period of two weeks, verify the claim made therein and give effect to the same once verified. Application disposed off.
Issues Involved:
1. Entitlement to seek rectification of Form GSTR-3B for the month of May 2019. 2. Waiver of late fees for non-filing of the GSTR-3B return for May 2019 and subsequent months. Detailed Analysis: Entitlement to Rectification of Form GSTR-3B: The writ applicant, a proprietary concern registered under the CGST/GGST Act, 2017, inadvertently uploaded incorrect data in the GSTR-3B for May 2019. The applicant sought rectification by addressing a representation to the Nodal Officer, SGST Office, Rajkot, but received no response. The applicant then approached the High Court under Article 226 of the Constitution of India. The core issue was whether the writ applicant is entitled to rectify Form GSTR-3B for May 2019. The court referred to the Delhi High Court's decision in Bharti Airtel Limited vs. Union of India & Ors., which dealt with a similar issue. The Delhi High Court had held that the statutory scheme under the CGST Act provided a facility for validation, modification, and rectification of monthly data through the IT System of the Government. The Act envisaged a self-policing system where the details of inward supplies (Form GSTR-2A) are auto-populated and verified by the supplier and recipient in the same month. The court noted that the CGST Act provided a two-stage rectification procedure: 1. First Stage: Errors or omissions could be rectified in the return for the tax period itself through auto-populated interaction on the system. 2. Second Stage: Unmatched details could be rectified in the return for the month during which such omission or incorrect particulars were noticed. Due to system issues, Forms GSTR-2 and GSTR-3 were not operationalized, and Form GSTR-3B, a summary return, was introduced. The court found merit in the argument that if the statutorily prescribed forms had been operationalized, the petitioner would have known the correct ITC available and could have discharged its liability through ITC instead of cash. The court concluded that the rectification of the return for the month to which the error relates is imperative. It allowed the writ applicant to rectify Form GSTR-3B for May 2019 and directed the respondents to verify the claim and give effect to it within two weeks of filing the rectified form. Waiver of Late Fees: The writ applicant also sought a waiver of the late fees charged for the non-filing of the GSTR-3B return for May 2019 and subsequent months. The court noted that the applicant was dragged into unnecessary litigation due to the technicalities raised by the respondents. It directed that the writ applicant should not be saddled with the liability of payment of late fees. Conclusion: The High Court allowed the writ application, permitting the rectification of Form GSTR-3B for May 2019. It directed the respondents to verify and give effect to the rectified form within two weeks. The court also waived the late fees for the non-filing of the GSTR-3B return for May 2019 and subsequent months, emphasizing that the applicant should not have to return to the court due to further technicalities raised by the Department.
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