Rectification of Clerical Errors in GSTR-1 to Be Allowed; Software Issues Do Not Justify Denying Corrections | HC

Case Details: Principal Chief Commissioner of GST and Central Excise vs. Deepa Traders - [2025] 173 taxmann.com 626 (Madras)

Judiciary and Counsel Details

• K.R. Shriram, CJ. & Mohammed Shaffiq J.
• A.P. Srinivas, SSC for the Appellant.
• Aditya Reddy for the Respondent.

Facts of the Case

The petitioner, an assessee under the Goods and Services Tax (GST) regime, filed its GSTR-1 return for the period 2017-18. During the filing process, clerical errors occurred, including incorrect GSTINs and names of recipients, incorrect invoice numbers and dates, omission of some invoice-wise details, and the remittance of IGST under the SGST and CGST heads. The petitioner asserted that the tax liability had been fully discharged based on the turnover reported, and the errors were inadvertent. The petitioner sought permission to rectify these clerical mistakes to ensure proper reconciliation with third-party returns. The Department, however, contended that no mechanism existed at that time to allow such rectifications and denied the request for correction. This led the petitioner to approach the Madras High Court for relief.

High Court Held

The Hon’ble Madras High Court held that the petitioner should be allowed to rectify the clerical errors in the GSTR-1 return. The Court observed that clerical or arithmetical errors are common and should not be denied correction, as this right is essential for conducting business. The Court further held that limitations in portal software cannot justify denying the opportunity for rectification, as such software is designed to facilitate compliance and can be configured to accommodate corrections. Consequently, the Court held that the petitioner was entitled to correct the clerical errors in the GSTR-1 return, thereby granting the requested rectifications.

List of Cases Reviewed

• Aberdare Technologies (P.) Ltd. v. CBDT & Customs [2024] 165 taxmann.com 325/105 GST 585/89 GSTL 6 (Bombay) (para 7)
• CBDT & Customs v. Aberdare Technologies (P.) Ltd. [SLP decided by Supreme Court on 21-03-2025] (para 7), followed

List of Cases Referred to

• Sun Dye Chem v. Asstt. Commissioner (ST) [2021] 124 taxmann.com 173/44 GSTL 358 (Madras) (para 4)
• Pentacle Plant Machineries (P.) Ltd. v. Office of the GST Council 2021 (52) GSTL 129 (Mad.)(para 4)
• Aberdare Technologies (P.) Ltd. v. CBDT & Customs [2024] 165 taxmann.com 325/105 GST 585/89 GSTL 6 (Bombay) (para 7).