Mistake of filing Form-B2B instead of B2C: Orissa HC Allows Correction in GSTR-1 to get ITC [Read Order]

A division bench of the Orissa High Court has pronounced an assessee-friendly ruling wherein the Court allowed the assessee to correct GSTR-1 in order to get the Input Tax Credit (ITC) as there was a bonafide mistake of filing of Form-B2B instead of B2C.

The Petitioner, Shiva Jyoti Construction approached the Court seeking a direction to the department to permit the Petitioner to rectify the GST Return filed for the period September, 2017 and March 2018 in Form-B2B instead of B2C as was wrongly filed under GSTR-1 in order to get the Input Tax Credit (ITC) benefit by M/s. Odisha Construction Corporation Limited (OCCL), the principal contractor.

The Petitioner contended that the error came to be noticed after the OCCL held up the legitimate running bill amount of the Petitioner by informing it about the above error on 21st January, 2020. It is the case of the Petitioner that thereafter it has beenmaking requests to the GSTdepartment to permit it to correct the GSTR-1 Forms but to no avail.

The department contended that once the deadline for rectification of the Forms was crossed, then no further indulgence could be granted to the Petitioner.

Chief Justice S Muralidhar and Justice M.S. Raman  “The fact remains that by permitting the Petitioner 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 Petitioner. On the contrary, if it is not permitted, then the Petitioner will unnecessarily be prejudiced.”

Concluding the order, the High Court held that “For the aforementioned reasons, the letters of rejection dated 19th June and 23rd September, 2020 are hereby set aside. The Court permits the Petitioner to resubmit the corrected Form-B2B under GSTR-1 for the aforementioned periods September, 2017 and March, 2018 and to enable the Petitioner to do so a direction is issued to the Opposite Parties to receive it manually. Once the corrected Forms are received manually, the Department will facilitate the uploading of those details in the web portal. The directions be carried out within a period of four weeks.”

To Read the full text of the Order CLICK HERE

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