HC directs Dept. to follow Circular for ITC Allowance in FY 19-20 Returns with Genuine Errors

Case Details: Wipro Ltd. v. Assistant Commissioner of Central Taxes - [2023] 148 taxmann.com 216 (Karnataka)

Judiciary and Counsel Details

• • S.R. Krishna Kumar, J.
  • G. Shivadass and Prashanth Sabarish Shivadass, Advs. for the Petitioner. 
  • Jeevan. J. Neeralgi., Hema Kumar and Sandeep Huilgol, Advs. for the Respondent.

Facts of the Case

The petitioner committed error in showing the wrong GSTIN number in the invoices which was carried forward in filing GSTR-1. It filed petition before the High Court seeking to allow rectification of Form GSTR-1 with respect to invoices issued to recipient recording wrong GSTIN so as to enable the actual recipient of supply to avail ITC.

High Court Held

The Honorable High Court noted that the error committed in present case by mentioning GSTIN of another group company of recipient is bona fide and occurred due to unavoidable circumstances and due to sufficient cause. The Court noted that the CBIC Circular No. 183/15/2022-GST provides rectification of bona fide and inadvertent mistakes committed at the time of filing returns.

However, the circular is applicable to FYs 2017-18 and 2018-19, but in case the error committed is identical then the said circular is applicable even to FY 2019-20. Therefore, the Court directed the department to follow procedure prescribed in circular and allow ITC subject to verification.