Bombay HC allows rectification of Form GSTR-1 [Read Order]

Facts of the case:

• The case of the petitioner is that the petitioner approached the jurisdictional GST officer to allow the petitioner to alter/amend the invoice details pertaining to F.Y. 2017-18 in GSTR-1 for the month of December 2019.
• It is the case of the petitioner that during the pendency of the said application, the petitioner received confirmation from the job workers that they had not availed of the input tax credit.
• On 6 January 2022, an application was filed before the Central Jurisdictional Commissionerate in relation to the disallowance of credit on account of the mismatch between GSTR-3B and GSTR-2A.
• It is stated that by communication received by the petitioner on 27 January 2022, the Central Jurisdictional Commissionerate informed the petitioner that no proceedings had been initiated against Jobworker, in this regard as also no communication was received from the State Jurisdictional Commissionerate.
• The petitioner has also referred to the guidelines which were issued by the State of Maharashtra in its Circular No. 02A of 2022 on the issues arising from ITC claims, in pursuance of which, it is contended that on 9 May 2022, the petitioner obtained a certificate from its Chartered Accountant, certifying that the petitioner had duly discharged GST on the transaction in dispute. The said certificate was stated to be shared by the petitioner with Job-worker on 23 August 2022, however, no response was received.

Rectification of bonafide errors made in GSTR-1

The contention of the petitioner that there is no provision either under the CGST Act or under the CGST Rules for rectification of bonafide errors made in GSTR-1. It is contended that there is also no revenue implication in that regard. It is on such premise, as no action was taken on the application of the petitioner so as to permit the petitioner to correct the bonafide error, the petitioner would contend that it is legitimately entitled for relief as prayed for.

Court Order:

7. In support of the above contentions, the petitioner has placed reliance on the decision in the case of M/s. Star Engineers (I) Pvt. Ltd. vs. Union of India & Ors. dated 14 December, 2023 wherein similar issues had fell for consideration of this Court. The court considering the provisions of the CGST Act had observed that in cases where there was a bonafide error in filing of the return and when there was no loss of revenue caused to the Government/exchequer, the technicalities on any legitimate rectification ought not to come in the way of the assessee, so as to suffer an inadvertent error, which would have a cascading effect. In our opinion, the present situation as brought before the Court is certainly covered as discussed by the Court in Star Engineers (I) Pvt. Ltd. (supra).

8. For the aforesaid reasons, we are of the opinion that the petition needs to be allowed. We accordingly allow the petition by permitting the petitioner to rectify the GSTR-1 for the period 2017-18. Ordered accordingly.

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