In a recent ruling, the Orissa High Court permitted to rectify the error that occurred in GST Returns -1 from B2C to B2B. The court found that the petitioner noticed the error after the opposite part held up the legitimate running bill amount of the Petitioner by informing it about the above error on 1st August 2022.
M/s. Chintamaniswar Constructions, the petitioner- assessee before the Court sought to issue direction to the opposite Parties- GST department to permit the Petitioner to rectify the GST Return filed for the period 2020-21 and 2021-22 from B2B instead of B2C as was wrongly filed under GSTR-1 in order to get the GST Input Tax Credit ( ITC ) benefit by M/s. The Odisha Police Housing and Welfare Corporation Ltd. (O.P. No.7), is the principal contractor. The last date by which the rectification should have been carried out was 20th October, 2021 and 30th November 2022 respectively.
The assessee stated that the error came to be noticed after the Opposite part held up the legitimate running bill amount of the Petitioner by informing it about the above error on 1st August, 2022. It is the case of the Petitioner that thereafter it has been making requests to the Opposite Parties to permit it to correct the GSTR-1 Forms but to no avail.
The stand taken by the Opposite Parties is that once the deadline for rectification of the Forms was crossed, then no further indulgence could be granted to the Petitioner.
The court viewed that by permitting the assessee to rectify the above error, there will be no loss whatsoever caused to the Opposite Parties. It is not as if that there will be any escapement of tax. This is only about the ITC benefit which in any event has to be given to the assessee . On the contrary, if it is not permitted, then the assessee will unnecessarily be prejudiced.
Relying in M/s. SUN DYE CHEM v. The Assistant Commissioner ST, the division bench comprising Justice Dr. B R Sarangi and Justice G Satapathy permitted the Petitioner to resubmit the corrected Form-GSTR-1 from B2C to B2B for the aforementioned periods 2020-21 and 2021-22 and to enable the Petitioner to do so a direction is issued to the Opposite Parties to receive it manually.
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