Judgement allowing rectification of Form GSTR 1 beyond the due date

Petitioner: Pentacle Plant Machineries Pvt Ltd

Respondents: GST Council, Asst Commissioner Tamil Nadu State Tax, Superintendent of CGST, Andhra Pradesh & Superintendent of CGST, Uttar Pradesh

Authority: Madras High Court

Date: 23rd February 2021

Case: The petitioner at the time of filing Form GSTR 1 for the period February 2018 instead of mentioning the GSTIN of the purchaser in Andhra Pradesh, mentioned the GSTIN of the purchaser in Uttar Pradesh due to which the purchaser in Andhra Pradesh could not claim Input Tax Credit despite receiving the goods. The purchaser notified the petitioner of the rejection of the credit, seeking amendment of the return, and threatening legal action.

Core Issue: Whether a mistake made in Form GSTR 1 can be rectified beyond the due date?

Court’s Observation:

1. The respondents accept that the invoices contain the name and GSTIN of the purchaser of Andhra Pradesh.

2. Had Form GSTR 2 and GSTR 1A been notified; the mismatch might have been noted on spot.

3. The petitioner was unaware that a mistake had crept into its original returns.

Judgement:

1. Since Forms GSTR-1A and GSTR-2 are yet to be notified, the petitioner should not be mulcted with any liability on account of the bonafide, human error and the petitioner must be permitted to correct the same.

2. The Court issued direction to the enable amendment of Form GSTR 1 within a period of 8 weeks from the date of Order.