HC allows rectification of errors in GSTR-1 Returns to prevent loss to department

Case Details: Y. B. Constructions (P.) Ltd. v. Union of India - [2023] 148 taxmann.com 244 (Orissa)

Judiciary and Counsel Details

• • Dr. S. Muralidhar, CJ. & M.S. Raman, J.
  • Ms K.R. choudhury, Adv. for the Appellant.
  • Radheyshyam Chimanta for the Respondent.

Facts of the Case

The petitioner filed writ petition before the High Court seeking a direction for Department to permit rectification of GST returns filed for the periods 2017-18 and 2018-19. It was contended that it had wrongly filed outward supply return of GSTR-1 by showing supplies under B2C instead of B2B due to which recipient could not avail input tax credit. The Department contended that time-limit for rectification had already been passed.

High Court Held

The Honorable High Court observed that there would be no loss caused to department if petitioner shall be permitted to rectify error as there was no escapement of tax. However, the petitioner would be prejudiced if relief would not be granted. The Court also noted that in similar case, the Madras High Court had accepted such plea and directions were given to file corrected form. Therefore, it was held that the petitioner would be permitted to resubmit corrected GSTR-1 return and the authorities were directed to receive forms manually and enable uploading in GST portal.