GST Offline Rectification u/s 161 Plea Valid, Taxpayer must also file Online Application as Procedural Requirement: Madras HC [Read Order]

The Madurai bench of the Madras High Court has held that a rectification application filed offline within the prescribed time under Section 161 of the Goods and Services Tax Act, 2017, cannot be disregarded, and directed the petitioner to additionally submit the application online in compliance with the Central Board of Indirect Taxes and Customs (CBIC) Circular.

In this case, the petitioner, Tvl Raj Computer, represented by its proprietor Monaram, sought a writ of mandamus to direct the Deputy State Tax Officer, Tirunelveli Town Assessment Circle, to consider its rectification petition dated 19.11.2024.

The petition was filed under Section 161 of the Goods and Services Tax Act, 2017, challenging an order dated 21.08.2024 that had been issued under Section 73 of the Act.

The petitioner, represented by counsel Mr. Raja Karthikeyan, argued that the rectification petition had been filed within the statutory time limit. Therefore, the respondent authority was bound to consider it on merits, notwithstanding the mode of filing.

The petitioner emphasized that rejection on procedural grounds would defeat the purpose of Section 161 of the GST Act, 2017.

The respondent, represented by Government Advocate Mr. J.K. Jayaselan, contended that as per CBIC Circular No. 237/31/2024-GST dated 15.10.2024, taxpayers are required to file rectification applications electronically on the GST portal. The respondent argued that since the prescribed procedure had not been followed, the application could not be considered unless refiled online.

Justice C. Saravanan held that since the offline application had been filed in time, it must be considered valid. However, in line with the CBIC Circular, the petitioner was directed to additionally file the rectification application online within 30 days from receipt of the order.

Once the online filing is completed, the respondent authority must decide the rectification application on merits without reference to the limitation period under Section 161 of the GST Act, 2017, as the initial offline filing preserved the petitioner’s rights.

The Court relied on the CBIC Circular dated 15.10.2024, which prescribed the procedure for filing rectification applications electronically through the GST portal.

The writ petition was accordingly disposed of with these directions.

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