GST Department cannot raise their hands in despair saying that it is not possible to correct GSTN glitches: Gujarat HC

Honorable Gujarat HC in the matter of M/S Bodal Chemicals Ltd. Versus Union Of India has said that the GST Department cannot raise their hands in despair saying that it is not possible to correct or take care of the technical glitches.

In this case, the writ applicant (M/S Bodal Chemicals Ltd.) herein has been running from pillar to post requesting the respondents to provide a solution and take care of the technical error and glitch that occurred as regards furnishing the GSTR – 6 return for recording and distributing the ISD credit of Rs.20,52,989/-. As usual, there is no response at the end of the GSTN. The applicant was not allowed to distribute the ISD credit amounting to Rs. 20,52,989/- as the same has not been recorded, reported, and declared in the GSTR-6 return.

The Counsel of Applicant submitted that the credit is a tax paid by the registered person on input transactions and therefore, the credit of such tax already paid to the credit of the Central Government is a vested right of the person. Such vested right cannot be defeated on account of any irregularity in the system evolved by the Government.

Bench having Coram of Honourable Mr. Justice J.B.Pardiwala and Honorable Ms. Justice Nisha M. Thakore directed to allow the writ applicant to furnish manually the GSTR – 6 return with details of the ISD credit of Rs.20,52,989/- and also permit distribution of such credit to the constituents of the writ applicant.