Affirming the judgment of the Bombay HC in the matter of Aberdare Technologies Pvt. Ltd vs. CBIC, the SC has allowed rectification of GSTR-1 and GSTR-3B after the due date.
CA Pratibha Goyal | Jun 7, 2025 |
Supreme Court Allows Rectification of GSTR-1 and GSTR-3B After Due Date
Affirming the judgment of the Bombay High Court in the matter of Aberdare Technologies Pvt. Ltd vs. Central Board of Indirect Taxes & Customs (CBIC), the Supreme Court has allowed rectification of GSTR-1 and GSTR-3B after the due date.
The Petitioner, Aberdare Technologies Pvt. Ltd., filed GST returns within time but after some time in December 2023, realised that there were certain errors in GST Returns with no loss of Revenue to the State.
The time prescribed under Section 39(9) of the CGST Act states that the rectification of such omission or incorrect particulars has to be made on or before the 30th day of November following the end of the financial year to which such details pertained.
Since he missed the deadline, Petitioner made a request in writing to the concerned authorities to permit rectification, which was not granted.
Using the judgment of the Bombay High Court in Writ Petition No.15368 of 2023, pronounced on 14th December 2023, Star Engineers (I) Pvt. Ltd. vs. Union of India petitioner filed a writ with the Bombay High Court.
Read Order of Bombay High Court
In the matter of Star Engineers (I) Pvt. Ltd. vs. Union of India, the Court has held that if there is no loss of Revenue, amendment/rectification of the Form GSTR-1 should be permitted even if it is made after 30th November.
The writ was accepted by the court, and the court took the decision in favour of the appellant, allowing rectification of GST returns even after the due date.
The CBIC filed a Special Leave Petition in the Supreme Court against this order.
The Apex Court decided not to interfere with the impugned judgment, which is, in fact, just and fair, as there is no loss of revenue. Asking CBIC to re-examine the provisions/timelines fixed for correcting the bonafide errors, the Court pointed out a few important points.
Denial of input tax credit
Time lines should be realistic, as lapse/defect invariably is realised when input tax credit is denied to the purchaser when the benefit of tax paid is denied.
The purchaser is not at fault, having paid the tax amount. He suffers because he is denied the benefit of the tax paid by him. Consequently, he has to make a double payment.
Taxpayers should have the right to correct bona fide mistakes
Human errors and mistakes are normal, and errors are also made by the Revenue. The right to correct mistakes in the nature of clerical or arithmetical error is a right that flows from the right to do business and should not be denied unless there is a good justification and reason to deny the benefit of correction.
Software limitation is no good justification
Software limitation itself cannot be a good justification, as software is meant to ease compliance and can be configured.
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