2025 (4) TMI 101 - SCH - GST

Rectification of errors in GST returns - non-compliance with time limitation prescribed under Section 39 (9) of CGST Act for correction - it was held by High Court that The respondents are directed to open the portal within one week from the date of this order being uploaded and inform petitioner to enable them to amend / rectify Form GSTR-1 and GSTR-3B within one week. HELD THAT - It is not inclined to interfere with the impugned judgment which is in fact just and fair as there is no loss of revenue. SLP dismissed.

Summary

In the Supreme Court of India, the bench led by the Chief Justice and Justice Sanjay Kumar addressed a special leave petition filed by the Central Board of Indirect Taxes and Customs. The Court condoned the delay in filing but declined to interfere with the impugned judgment, finding it "just and fair" as there was "no loss of revenue." Consequently, the petition was dismissed.The Court highlighted the need for the petitioner to "re-examine the provisions/timelines fixed for correcting the bona fide errors," emphasizing that these timelines should be realistic. The judgment noted that errors often become apparent when "input tax credit is denied to the purchaser," who is not at fault and ends up making double payments. The Court underscored that the "right to correct mistakes in the nature of clerical or arithmetical error" is intrinsic to the right to conduct business and should not be denied without "good justification." It criticized software limitations as insufficient justification for denying correction rights, as software can be configured to "ease compliance."The Court also indicated that the High Court decisions in Bar Code India Limited v. Union of India and others and Yokohama India Private Limited v. State of Telangana may not constitute good law on this matter and suggested that their ratio could be examined in another case. All pending applications were disposed of.