No, the Honorable Bombay High Court in the case of NRB Bearings ltd. v. Commissioner of State Tax [Writ Petition No. 10771 of 2023 dated 14.02.2024], allowed the petition while permitting the Taxpayer to rectify FORM GSTR-1 and held that in cases of bonafide errors in filing returns where no loss of revenue occurs, the technicalities should not prevent rectification.
The Honorable Bombay High Court relied on M/s. Star Engineers (I) Pvt. Ltd. v. Union of India & Ors. [Writ Petition No. 15368 of 2023 dated 14.12.2023], wherein the court observed that in cases where there was a bonafide error in the filing of return and when there was no loss of revenue caused to the Government/ exchequer, the technicalities on any legitimate rectification ought not to come in the way of the Taxpayer, so as to suffer an inadvertent error, which would have a cascading effect.
Author’s Comments:
This judgment comes to the rescue of bonafide taxpayers to allow them to rectify their GSTR-1 and will allow recipients to settle ongoing litigation.
A similar judgment was delivered by the Honorable Orissa High Court in M/s. Y. B. Constructions Pvt. Ltd. v. Union of India and Others [W.P.(C) No. 12232 of 2021 dated 22.02.2023], wherein it was permitted to the taxpayer to rectify the error of mentioning B2C instead of B2B in Form GSTR-1 at the time of fling of returns, holding that the Taxpayer would be prejudiced if it not allowed to avail the benefits of ITC.
In a similar matter, the Honorable Orissa High Court in M/s. Shiva Jyoti Construction v. The Chairperson, Central Board of Excise & Customs and other [W.P. (C) No.18216 of 2017 dated 12.01.2023] had permitted the assessee to rectify its Form GSTR-1 filed.
Further, the Honorable Karnataka High Court in M/s. Wipro Limited India v. the Assistant Commissioner of Central Taxes and Ors. [Writ Petition No. 16175 of 2022 (T-Res) dated 06.01.2023] had allowed the assessee to rectify the errors committed at the time of filing of Forms and submitting GST Returns for FY 2017-2020.
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