GST Portal Must Allow Rectification of Bonafide GSTR-1 Errors With No Revenue Loss

The petitioner, a registered GST assessee, filed GSTR-1 returns for June 2022 to September 2022 but inadvertently mentioned the GSTIN of the Kerala branch of the buyer instead of its Tamil Nadu branch. Due to this error, the buyer was unable to avail Input Tax Credit and later withheld payment amounts from the petitioner.

Upon being informed of the mistake, the petitioner sought permission from the GST authorities to rectify the GSTR-1 returns, which was not acted upon, leading to the filing of the writ petition.

Central Issue: Whether GST authorities are required to permit rectification of bonafide errors in GSTR-1 returns, even after the statutory time limit, when there is no loss of revenue.

HC’s Ruling: The Hon’ble High Court partly allowed the writ petition and held that bona fide and inadvertent errors in GSTR-1 returns should be permitted to be rectified where no revenue loss is involved.

Relying on  NRB Bearings, Star Engineers, and Aberdare Technologies, the Court directed the GST authorities to permit amendment of the petitioner’s GSTR-1 returns within four weeks. The Court clarified that if the GST portal could not be opened, manual rectification must be permitted and processed in accordance with law.

To Read Full Judgment, Download PDF Given Below