IGST-Total Taxable Value Mistake in filing April 2019 GSTR-3B: Patna HC allows to Rectify GSTR-3B on par with GSTR-1 [Read Order]

In a recent ruling, the Patna High Court held that a taxpayer is permitted to rectify a clerical error made while filing GSTR-3B and directed that the return be corrected to match the figures already declared in GSTR-1.

Om Traders, a two-wheeler dealer based in Bihar, filed a writ petition after a demand of tax, interest, and penalty amounting to Rs. 2.49 crore was raised against it for April 2019. The petitioner had correctly filed GSTR-1 on 10 May 2019. While filing GSTR-3B on 20 June 2019, he mistakenly entered incorrect figures under taxable value and IGST leading to a mismatch with GSTR-1.

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The petitioner quickly sought rectification but its request was rejected by the Central authorities on 6 May 2020, stating that there was no provision to adjust IGST against CGST and SGST. Authorities further advised the petitioner to pay the correct tax again under CGST and SGST and then apply for a refund of the excess IGST.

The petitioner’s counsel argued that the error was purely clerical, that no loss was caused to the revenue, and that the available IGST credit could have been adjusted under Rule 88A of the CGST Rules. The counsel relied on the judgment of the Bombay High Court in Aberdare Technologies Pvt Ltd v. CBIC, which permitted rectification of such errors and pointed out that the decision had been affirmed by the Supreme Court in 2025.

The department’s counsel argued that the petitioner failed to follow the advice given by the Assistant Commissioner in 2020 and that under Section 49(5) of the CGST Act, the procedure required fresh payment of CGST and SGST with a subsequent refund claim for the excess IGST.

The Division Bench comprising Justice P. B. Bajanthri and Justice S. B. Pd. Singh observed that although there is no system in the GST portal for modifying GSTR-3B once filed, this cannot deny a taxpayer the right to correct a genuine clerical mistake.

The court also explained that when asked if such rectification would cause loss to the exchequer, the State counsel could not provide an answer. The court referred to the Bombay High Court’s ruling in Aberdare Technologies Pvt Ltd, affirmed by the Supreme Court, where rectification of GSTR-3B was directed in similar circumstances.

The court held that the petitioner’s request for rectification was justified and that the rejection order dated 6 May 2020 and the demand order dated 23 August 2024 were unsustainable. The court quashed both orders and directed the authorities to allow rectification of GSTR-3B in line with GSTR-1 within one month upon a manual application from the petitioner, and to redress any resulting grievance within two months.

The writ petition was allowed.

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