ITC AVILED BUT NOT UTILIZED, Goods and Services Tax - GST

[Rauf Khan]

With Due Respect I want to say that at the time of filling November GSTR-3B . I wanted to take ITC ₹ 5817623 but due to typical mistake I put the value ₹ 58173623 although in the month of January I reversed all excess ITC which I put wrongly even I did not utilized any excess ITC. When I concerned about this matter with my jurisdiction officer he told me you need to deposit interest on reversed ITC but when I calculate it is very high and I am not able to give such interest.

Please guide me so that i can get relief from this problem

Posts / Replies

[KASTURI SETHI]

As per Section 50 (3) of CGST Act, interest is payable but it is a human error without any mala fide intention. Bombay High Court vide order 26.9.18 2018 (10) TMI 199 - BOMBAY HIGH COURT has issued directions to the Board to issue special/general order under Section 172 of CGST Act, 2017 for rectification of such human error where no mala fide intention is involved.

Your mistake is similar to this. So file written application manually. So you should meet the higher officer of the department. ( preferably jurisdictional Commissioner) with a copy of this High Court Order.

It is not the intention of law to levy interest such human errors. You will have to make efforts. After acceptance of your application for non-recovery of interest, error will also be rectified on Common Portal System.

Rectification/Correction of typographical/human error in GST Returns

The Division Bench of Bombay High Court comprising Hon’ble Mr. Justice M.S. Sanklecha and Hon’ble Mr. Justice Riyaz I. Chagla on 24-10-2018 disposed of the Writ Petition No. 2086 of 2018 filed by O/E/N India Ltd against Union of India. = 2018 (10) TMI 1620 - BOMBAY HIGH COURT The Petitioners have sought directions for allowing the re-submission of Form TRAN-1 either electronically or manually as due to typographical/human error, the Cenvat credit of ₹ 11,10,555/- instead of ₹ 1,11,10,555/- have been claimed. The Hon’ble High Court in its order dated 26-9-2018 observed that there is no provision under GST Act which allows rectification/correction of such type of typographical/human error, hence it would be appropriate for the Central Government to issue a general/special order under Section 172 of the GST Act. The C.B.I. & C. in response to the observations of the Hon’ble High Court has decided to grant relief to the petitioner for rectification of mistake after verification of the bona fides of the claim made by them. The Hon’ble High Court while disposing the writ petition passed the following order :

[O/E/N India Ltd. v. Union of India - 2019 (20) G.S.T.L. J45 (Bom.)] = 2018 (10) TMI 1620 - BOMBAY HIGH COURT

[Rauf Khan]

Thank you very much sir. this information is very important for me and i always grateful to you.

[KASTURI SETHI]

Dear Sh.Rauf Khan,

Both of us should be thankful to TMI who has given free platform (Discussion Forum) to the querists as well as experts. Otherwise there is no 'free lunch'. Assessees save their time, money and energy through this forum. It is a fact and no exaggeration.