38.6c New Delhi, India, Sunday, May 19, 2024
Judiciary

Tax Department Should Allow Amendments in GST Forms, Make Filing System More User Friendly: Bombay High Court [Read Order]

By Rintu Mariam      16 December, 2023 02:31 PM      0 Comments
Tax Department Should Allow Amendments in GST Forms Make Filing System More User Friendly Bombay High Court

The tax department should ensure that the there’s no unwarranted litigation and make the system more assessee/taxpayer friendly. This is what the Bombay High Court observed recently. 


A Bench of Jitendra Jain and GS Kulkarni ruled that correction of bonafide, inadvertent error under the details’ coloumn in GST returns should be allowed especially when there’s no loss of revenue to the Government.


“It is considering such object and the ground realities, the law would be required to be interpreted and applied by the Department. This necessarily would mean, that a bonafide, inadvertent error in furnishing details in a GST return needs to be recognized, and permitted to be corrected by the department, when in such cases the department is aware that there is no loss of revenue to the Government. Such freeplay in the joint requires an eminent recognition. The department needs to avoid unwarranted litigation on such issues, and make the system more assessee friendly. Such approach would also foster the interest of revenue in the collection of taxes.” 


The High Court was hearing a petition by Star Engineers (I) Pvt Ltd, engaged in designing and manufacturing electronic components for industrial purposes. It sought permission to make necessary amendments or rectify mistakes in its Form GSTR-1 either through online or manual means.


The plea essentially was challenging a September 27, 2023 communication issued by the Deputy Commissioner, State Tax, rejecting permission to modify/amend its Form GSTR-1 for the 2021-2022 financial year, citing it was time-barred. 


Under certain circumstances, the invoices submitted by the petitioner did not appear in Bajaj Auto Limited’s (BAL) Form GSTR-2B but instead inadvertently appeared in vendor’s Form GSTR-2B. BAL was unable to claim Input Tax Credit for those invoices and at the time of processing the payment of the petitioner for the month of March 2023, BAL reduced the amount equivalent to the GST amount, inter alia stating that BAL had not claimed the said invoices for ITC as same were not appearing in Form GSTR-2B, as GSTIN of a third party was given instead of BAL.


The petitioner then approached the Deputy Commissioner of State Tax contending that they had fulfilled its tax obligation in relation to the supplies made to BAL during the financial year 2021-22. It indicated that all the required taxes associated with the transactions involving BAL had been duly paid to the Government. And, that the petitioner had also complied all GST Regulations. However, this wasn’t permitted. 


After referring to relevant provisions of the Central Goods and Services Tax / Maharashtra Goods and Service Tax, 2017, the Court opined that the provisions need to be purposively interpreted. 


“We cannot read sub-section (3) of Section 37 to mean that the assessee would be prevented from placing the correct position and having accurate particulars in regard to all the details in the GST returns being filed by the assessee and that there would not be any scope for any bonafide, and inadvertent rectification / correction. This would presuppose that any inadvertent error which had occurred in filing of the returns, once is permitted to be rectified, any technicality not making a window for such rectification, ought not to defeat the provisions of sub-section (3) of Section 37 read with the provisions of sub-section (9) of Section 39 read de hors the provisos.”


Any contrary interpretation would lead to absurdity, the GST returns being maintained would have incorrect particulars and this would have “cascading effect”. This is should be borne in mind when considering the cases of inadvertent human errors creeping into the filing of GST returns, the Court cautioned while allowing the petitioner’s plea.

 

[Read Order]



Share this article:



Leave a feedback about this
Related Posts
View All

Kedarnath Movie: Bombay High Court Dismisses PIL To Stay Release Kedarnath Movie: Bombay High Court Dismisses PIL To Stay Release

The Bombay High Court on December 6, 2018, dismissed a petition filed against upcoming movie Kedarnath seeking a direction to stay the release of the movie

Husband Can Also Claim Alimony/Maintenance From Wife: Bombay High Court Orders Woman To Pay Alimony To Ex-Husband [Read Order] Husband Can Also Claim Alimony/Maintenance From Wife: Bombay High Court Orders Woman To Pay Alimony To Ex-Husband [Read Order]

Husband Can Also Claim Alimony/Maintenance From Wife: Bombay High Court Orders Woman To Pay Alimony To Ex-Husband || "It is open for the court to decide the application filed by the husband under Section 25 of the 1955 Act, seeking monthly maintenance, by way of final proceedings, pending which, the application for interim maintenance filed under Section 24 of the Act of 1955, has been rightly entertained by the learned Judge and the husband has been held entitled to interim maintenance while the proceedings under Section 25 are pending," she noted.

Maharashtra Cabinet Minister Nawab Malik Approaches Supreme Court Against ED Arrest After Bombay High Court Refuses Relief Maharashtra Cabinet Minister Nawab Malik Approaches Supreme Court Against ED Arrest After Bombay High Court Refuses Relief

Maharashtra Cabinet Minister Nawab Malik Approaches Supreme Court Against ED Arrest After Bombay High Court Refuses Relief || "There is something or the other going against every leader of the NCP, Congress and Shiv Sena... Prime Minister Narendra Modi has one thing in mind: he wants BJP rule from Kashmir to Kanyakumari, irrespective of the wishes of the people," Pawar said.

Salman Khan Approaches Bombay High Court Challenging Summons By  Lower Court Against Complaint of a Journalist Salman Khan Approaches Bombay High Court Challenging Summons By Lower Court Against Complaint of a Journalist

The magistrate court issues the process if it finds prima facie substance in the allegations made in the complaint. Once the process is issued, the accused persons have to appear before the court.

TRENDING NEWS

sc-notice-to-ec-on-plea-by-adr-for-release-of-voters-turnout-data
Trending Judiciary
SC notice to EC on plea by ADR for release of voters turnout data

SC issues notice to EC on ADR plea to release voter turnout data. SC demands EC to disclose vote counts within 48 hours after each phase of the 2024 Lok Sabha polls.

18 May, 2024 11:16 AM
delhi-hc-refuses-jackie-shroff-interim-relief-against-youtuber-unfilteredthugesh-for-alleged-personality-rights-infringement
Trending CelebStreet
Delhi HC refuses Jackie Shroff interim relief against Youtuber 'UnfilteredThugesh' for using "Thug Life" in video on Shroff

The Delhi High Court has refused Jackie Shroff interim relief against Youtuber 'UnfilteredThugesh' for alleged personality rights' infringement.

18 May, 2024 05:20 PM

TOP STORIES

indian-courts-this-week-law-street-journals-weekly-round-up-of-sc-hcs-may-6-may-10
Trending Judiciary
Indian Courts this Week: Law Street Journal's Weekly Round-Up of SC & HCs [May 6 - May 10]

Get the latest updates from India's Supreme Court and the High Courts ! Here’s a round up of the week's top legal stories in a quick, easy-to-read summary.

13 May, 2024 10:29 AM
sc-dismisses-union-govt-plea-against-bail-to-maoist-financer-in-case-of-attack-on-police-party-in-jharkhand
Trending Judiciary
SC dismisses Union govt's plea against bail to Maoist financer in case of attack on police party in Jharkhand [Read Judgment]

SC rejects govt's plea against bail for accused in Jharkhand police attack case, citing absence of violated bail conditions.

13 May, 2024 11:33 AM
supreme-court-upholds-gang-rape-conviction-though-victim-turned-hostile
Trending Judiciary
Supreme Court upholds gang rape conviction, though victim turned hostile [Read Judgment]

SC upholds gang rape conviction despite victim's hostility, affirming witness credibility in criminal trials.

13 May, 2024 12:24 PM
sanatana-dharma-remarks-sc-seeks-response-from-up-maha-ktka-bihar-jamp;k-on-udhayanidhis-plea-for-clubbing-firs
Trending Judiciary
Sanatana Dharma remarks SC seeks response from UP, Maha, Ktka, Bihar, J&K on Udhayanidhi's plea for clubbing FIRs

SC seeks response on Udhayanidhi's plea for clubbing FIRs related to his remarks on 'Sanatan Dharma'.

13 May, 2024 12:39 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email