The Kerala High Court has allowed a petitioner to rectify the GSTR-3B returns filed for the inadvertent error of classifying Input Tax Credit (ITC) as Integrated GST (IGST) instead of Central GST and State GST.
Praveen, a registered dealer under the KVAT Act, now governed by the CGST/SGST Act, filed a writ petition under Article 226 of the Constitution of India. The petitioner aimed to rectify mistakes in Form GSTR-3B, specifically pertaining to the classification of input tax credit as IGST instead of SGST and CGST credits.
The petitioner sought the issuance of a writ of mandamus directing the authorities to permit the rectification of the said mistake, refund of IGST input tax credit, reconsideration of certain exhibits, and quashing of unjust assessment orders.
During the hearing, N. S. Shamila, Counsel for the petitioner, argued that errors in the GSTR-3B returns led to the assessment order in question (Exhibit P3). The petitioner had submitted a representation (Exhibit P4) seeking rectification on October 21, 2023.
Jasmin M. M., Government Pleader, did not contest the petitioner’s request for rectification.
Consequently, the High Court disposed of the petition, directing the 3rd respondent (State Tax Officer) to treat the representation (Exhibits P4 and P5) as a rectification application and issue necessary orders expeditiously. The court emphasized that the order should be passed within two months, providing an opportunity for the petitioner’s hearing.
The High Court’s decision serves as a positive development for Mr. Praveen, as it directs tax authorities to review the rectification application promptly. This case highlights the importance of procedural fairness in tax matters and the legal avenues available to taxpayers for rectification of inadvertent errors in compliance documents.
Recently, the Bombay High Court had directed the department to permit the petitioner or assessee to amend or rectify Form GSTR-1 for July 2021 either online or manually.
Read More: Rectification/Amendments in GSTR – 1 either Online or Manual are Allowable: Bombay HC
The division bench of Justice G. S. Kulkarni and Justice Jitendra Jain observed that the State Tax officer ought to have granted the petitioner’s request to rectify/amend the Form GSTR–1 for the period July 2021, November 2021 and January 2022, either through Online or manual means.
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