HC Allows GSTR-3B Rectification for Clerical Error Matching GSTR-1

Case Details: Om Traders vs. Union of India - [2025] 174 taxmann.com 1156 (Patna)

Judiciary and Counsel Details

• P.B. Bajanthri & S.B. Pd. Singh, JJ.
• D.V. Pathy, Sadashiv Tiwari, Hiresh Karan, Mrs Shivani Dewalla & Mrs Prachi Pallavi, Advs. for the Petitioner.
• Anshuman Singh, SR. SC & Vikas Kumar, SC-11 for the Respondent.

Facts of the Case

The petitioner, a registered assessee under CGST and Bihar GST Act, filed GSTR-1 and subsequently filed GSTR-3B, wherein certain figures were inadvertently reported incorrectly. Upon discovering the discrepancy between the figures reported in GSTR-1 and GSTR-3B, the petitioner submitted an application requesting rectification of GSTR-3B to bring it in line with the figures declared in GSTR-1.

The jurisdictional authority rejected the request for rectification and proceeded to issue a demand order imposing tax, interest, and penalty solely on the basis of the incorrect figures declared in GSTR-3B. The matter was therefore brought before the Hon’ble High Court by way of a writ petition. Challenging this order, the petitioner submitted before the Hon’ble High Court that the error was unintentional and supported by consistent and accurate disclosures in GSTR-1.

High Court Held

The Hon’ble High Court held that the mismatch between GSTR-1 and GSTR-3B clearly resulted from an inadvertent error committed by the petitioner while filing the GSTR-3B return. It observed that GSTR-1, being already on record and not disputed by the authority, accurately reflected the petitioner’s outward supplies. The Court concluded that the petitioner’s request to rectify GSTR-3B was genuine and reasonable, as it was only meant to correct a clerical mistake without any intention to evade tax.

Therefore, the Court set aside the demand order issued on the basis of incorrect GSTR-3B figures and directed the jurisdictional authority under CGST and Bihar GST Act to carry out rectification of GSTR-3B so as to match the figures declared in GSTR-1.

List of Cases Reviewed

• Aberdare Technologies (P.) Ltd. v. CBDT & Customs [2024] 165 taxmann.com 325/105 GST 585/89 GSTL 6 (Bombay) (para 6)
• Star Engineers (I) (P.) Ltd. v. Union of India [2023] 157 taxmann.com 285/[2024] 102 GST 33/81 GSTL 460 (Bombay) (para 8), followed.

List of Cases Referred to

• Aberdare Technologies (P.) Ltd. v. CBDT & Customs [2024] 165 taxmann.com 325/105 GST 585/89 GSTL 6 (Bombay) (para 3)
• Star Engineers (I) (P.) Ltd. v. Union of India [2023] 157 taxmann.com 285/[2024] 102 GST 33/81 GSTL 460 (Bombay) (para 7).