2024 (10) TMI 1118 - HC - GST

Seeking to rectify GSTR-1 for the months of October 2022 and November 2022 in respect of five export invoices - HELD THAT - Having taken note of the fact that there is no objection as regards the claim made by the petitioner that the Form GSTR-1 was filed by reasons of a genuine mistake and such mistake had come to light for the first time when the order of part refund was issued on 6th July 2023 i.e. much prior to the last date for correcting the return filed in Form GSTR-1 in terms of proviso to Section 37(3) of the GST Act however since the petitioner s refund application was partly allowed the petitioner had been prevented from rectifying the error as there is no scope available to rectify such error on the portal. It however appears to be a case of genuine mistake having regard to the stand taken both by the State respondents as also by the customs authorities. The Hon ble Division Bench in the case of Abdul Mannan Khan 2023 (5) TMI 287 - CALCUTTA HIGH COURT had been pleased to observed that assesses should not be prejudiced from availing credit that they are otherwise legitimately entitled to. 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 statute. By following the judgment delivered by the Hon ble Division Bench in Abdul Mannan Khan it is directed that the petitioner to resubmit corrected GSTR-1 Form manually with a further direction upon the respondent no. 3 to receive the same provided the same is submitted within three weeks from the date. The respondent no. 3 is directed to receive the same manually and would facilitate uploading of the details in the web portal. The aforesaid direction is being issued by proceeding on the premise that the assessee should not be prejudiced from availing the benefit which it is otherwise legitimately entitled to by taking note of the stand of the State respondents and the customs authorities. The writ petition is disposed of.

Summary

Issues:
Rectification of GSTR-1 for export invoices due to inadvertent error.

Analysis:
The petitioner, engaged in the business of supplying minerals and allied products, exported goods with IGST payment but mistakenly marked them as "without payment of IGST" in GSTR-1 for October and November 2022. The error was discovered after a partial refund was granted, prompting the petitioner to seek permission to rectify the invoices.

The State respondents and Customs authorities clarified their inability to allow corrections due to lack of control over the common portal. The Court directed the State respondents to confirm if the mistake was genuine, considering the petitioner's filing of GSTR 3B correctly for the same period.

Upon State respondents' acknowledgment of the mistake's genuineness, the Court relied on a previous judgment to allow rectification manually. The Court emphasized that the petitioner should not be deprived of legitimate credit entitlement due to inadvertent errors.

Following the precedent, the Court directed the petitioner to resubmit corrected GSTR-1 manually within three weeks for uploading on the web portal. The State respondents were instructed to facilitate the process to ensure the petitioner can avail the entitled credit for the export invoices in question.

The petitioner was also directed to clear all taxes and interest determined by the respondents to avail the credit benefit. The writ petition was disposed of with these directions, emphasizing the importance of not prejudicing the petitioner from legitimate entitlements.

Overall, the judgment focused on rectifying a genuine mistake in GSTR-1 to ensure the petitioner's rightful credit entitlements are not compromised, highlighting the importance of procedural fairness and legitimate claims in tax matters.