2019 (9) TMI 269 - HC - GST

Rectification of mistake in the earlier return - credit taken and utilized was not correctly reflected in the monthly returns i.e. GSTR-1, GSTR-2A and GSTR-3B - prohibition in the law for correction of such mistake or not - HELD THAT - Mr. Mishra, learned Counsel appearing for the respondent seeks time to take instructions. He particularly states that he would take instructions as to the Authority who would deal with such applications / representations made by the petitioner. Petition adjourned to 5th September, 2019.

Summary

Issues:
1. Incorrect reflection of credit in monthly returns under the Central Goods and Services Tax Act.
2. Inability to correct mistakes in annual returns due to system limitations.
3. Lack of provision to rectify filed returns in case of human error.
4. Unanswered representations to amend monthly or annual returns.

Analysis:
1. The petitions raised concerns regarding the incorrect reflection of credit in the monthly returns, specifically GSTR-1, GSTR-2A, and GSTR-3B, due to human errors. The petitioner faced challenges when attempting to file annual returns under GSTR-9 to rectify these mistakes as the system did not allow corrections to be made to the auto-populated data. This issue highlights the practical difficulties faced by taxpayers in ensuring accurate reporting under the GST regime.

2. The counsel for the petitioner argued that the absence of provisions in the Act to rectify filed returns in cases of human error results in the system overriding the law. The system limitations preventing corrections to be made post-filing raise questions about the effectiveness of the current framework in accommodating genuine errors made by taxpayers. The inability to rectify mistakes can have significant implications for compliance and reporting accuracy.

3. The respondent's counsel sought time to obtain instructions regarding the authority responsible for addressing applications or representations made by the petitioner. This indicates a procedural aspect where clarity is needed on the process for handling requests for amendments or rectifications to filed returns. The response from the authorities and the time frame within which such requests will be considered are crucial for ensuring procedural fairness and addressing taxpayer grievances.

4. In light of the submissions made by both parties, the court adjourned the petitions to a later date to allow the respondent's counsel to provide information on the authority responsible for dealing with applications for amendments or corrections to returns. The adjournment reflects the court's commitment to thoroughly consider the issues raised and seek clarity on the procedural aspects involved in addressing errors or discrepancies in GST returns. Overall, the judgment underscores the importance of procedural fairness and the need for a mechanism to address genuine errors made by taxpayers within the GST framework.