2024 (5) TMI 304 - HC - GST

Liability of tax arising on account of inadvertent error - mismatch between the petitioner's GSTR 1 and GSTR 3B returns - error was committed by providing details pertaining to the same invoice more than once - HELD THAT - The petitioner's explanation was disregarded as unacceptable and as an after-thought merely on the ground that the petitioner did not amend the GSTR 1 statement on or before March 2019. In the face of the documents submitted by the petitioner, the matter requires reconsideration so as to ascertain whether the purchasers indeed did not avail of excess input tax credit on the basis of the duplicate invoices. For such reason, the impugned order call for interference. The respondent is directed to provide a reasonable opportunity to the petitioner, including a personal hearing, and thereafter issue a fresh order within a period of two months from the date of receipt of a copy of this order - Petition allowed by way of remand.

Summary

Issues involved: Challenge to an order regarding mismatch between GSTR 1 and GSTR 3B returns.

Summary:
The petitioner, a registered person under GST enactments, filed GSTR 1 with an error of providing details for the same invoice multiple times. Upon intimation of discrepancies, petitioner clarified the error was inadvertent and correct details were in GSTR 3B. Certificates from purchasers confirmed they excluded duplicate invoices for availing input tax credit (ITC). The impugned order imposed tax liability despite no revenue loss.

The respondent argued that petitioner failed to rectify GSTR 1 within the prescribed time limit, hence the order was valid. However, petitioner's submissions and purchaser certificates indicated no excess ITC was claimed based on duplicate invoices.

The impugned order was set aside, remanding the matter for reconsideration. The court directed the respondent to provide a reasonable opportunity to the petitioner, including a personal hearing, and issue a fresh order within two months.