2020 (11) TMI 108 - HC - GST

Permission to correct Form GSTR-1 for the period August 2017 to December 2017 and redistribute the credit available from the IGST column to the CGST and SGST fields - HELD THAT - A registered person who files a return under Section 39(1) involving intra-State outward supply is to indicate the collection of taxes customer-wise in monthly return in Form GSTR-1 and the details of tax payment therein are auto populated in Form GSTR -2-A of the buyers. Any mismatch between Form GSTR-1 and Form GSTR-2A is to be notified by the recipient by way of a tabulation in Form GSTR-1A. Admittedly, Forms in GSTR-2A and GSTR-1A are yet to be notified as on date. The statutory procedure contemplated for seamless availment is, as on date, unavailable. Undoubtedly, the petitioner in this case has committed an error in filing of the details relating to credit. What should have figured in the CGST/SGST column has inadvertently been reflected in the ISGT column. It is nobody s case that the error was deliberate and intended to gain any benefit, and in fact, by reason of the error, the customers of the petitioner will be denied credit which they claim to be legitimately entitled to, owing to the fact that the credits stands reflected in the wrong column. It is for this purpose, to ensure that the suppliers do not lose the benefit of the credit, that the present writ petition has been filed. Admittedly, the 31st of March 2019 was the last date by which rectification of Form GSTR 1 may be sought. However, and also admittedly, the Forms, by filing of which the petitioner might have noticed the error and sought amendment, viz. GSTR-2A and GSTR-1A are yet to be notified. Had the requisite Forms been notified, the mismatch between the details of credit in the petitioner s and the supplier s returns might well have been noticed and appropriate and timely action taken. The error was noticed only later when the petitioners customers brought the same to the attention of the petitioner - In the absence of an enabling mechanism, the assessees 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. The petitioner is permitted to re-submit the annexures to Form GSTR-3B with the correct distribution of credit between IGST, SGST and CGST within a period of four weeks from date of uploading of this order and the respondents shall take the same on file and enable the auto-population of the correct details in the GST portal - petition allowed - decided in favor of petitioner.

Issues Involved:
1. Error in reporting credit in Form GSTR-1.
2. Rejection of request for amendment of Form GSTR-1.
3. Legal provisions governing the filing and rectification of GST returns.
4. Petitioner's request for a mandamus to correct Form GSTR-1.
5. Respondents' counter-arguments based on statutory timelines and provisions.

Detailed Analysis:

1. Error in Reporting Credit in Form GSTR-1:
The petitioner, a registered dealer under the Tamil Nadu Goods and Service Tax Act, 2017, filed monthly returns for August 2017 to December 2017 in Form GSTR-3B, accompanied by annexures in Form GSTR-1. An inadvertent error occurred where intra-state sales were reported as inter-state sales, causing CGST and SGST credits to be reflected in the IGST column. This error was identified when customers found it difficult to avail the said credit.

2. Rejection of Request for Amendment of Form GSTR-1:
The petitioner requested an amendment of Form GSTR-1, which was rejected on 12.08.2019 as there was no provision to grant the amendment after 31.03.2019, the deadline extended by Notification 71/2018 for the period 2017-18. Consequently, the petitioner was unable to correct the error.

3. Legal Provisions Governing the Filing and Rectification of GST Returns:
The respondents cited Sections 37, 38, and 39 of the Act, which outline the procedures for furnishing details of outward and inward supplies and filing returns. Section 37(3) allows rectification of errors or omissions in returns, but no rectification is permitted after the filing of the return under Section 39 for the month of September following the end of the financial year or the relevant annual return, whichever is earlier. The last date for rectification in this case was 31.03.2019.

4. Petitioner's Request for a Mandamus to Correct Form GSTR-1:
The petitioner sought a mandamus directing the Assistant Commissioner to permit the correction of Form GSTR-1 for the period August 2017 to December 2017 and to redistribute the credit from the IGST column to the CGST and SGST fields. The petition was filed because the error was inadvertent and not intended to gain any benefit, and it caused difficulty for the petitioner's customers in availing the legitimate credit.

5. Respondents' Counter-Arguments Based on Statutory Timelines and Provisions:
The respondents argued that the petitioner approached the Officer only on 16.08.2019, well past the deadline of 31.03.2019 for rectification. They highlighted that any amendment of statutory timelines could only be done by the Government upon recommendation of the GST Council, as per Section 164 of the Act.

Judgment:
The court acknowledged that the petitioner committed an inadvertent human error and that the statutory forms (GSTR-2A and GSTR-1A) which could have helped identify the error in time, were not notified. The court emphasized that assessees should not be prejudiced from availing credit they are legitimately entitled to due to the absence of an enabling mechanism.

The writ petition was allowed, and the impugned order was set aside. The petitioner was permitted to re-submit the annexures to Form GSTR-3B with the correct distribution of credit between IGST, SGST, and CGST within four weeks. The respondents were directed to take the corrected details on file and enable auto-population in the GST portal. No costs were awarded.

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