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January 16, 2023

HC permits GSTR-1 correction for bona fide errors in providing accurate information on outside supply

by CA Shivam Jaiswal in GST

HC permits GSTR-1 correction for bona fide errors in providing accurate information on outside supply

Fact and issue of the case

M/s Wipro Limited India (“the Petitioner”) while making supplies to the M/s ABB Global Industries and Services Private Limited, incorrectly mentioned the GSTIN in the invoices of ABB India Limited, which is a completely different and independent juristic and legal entity. Being aggrieved this petition has been filed by the Petitioner, contending that the error committed in the invoices and relevant forms were bonafide and therefore, as per the Circular, the Petitioner should be allowed to access the GST portal in order to rectify Form GSTR-1 uploaded between FY 2017-18 and 2018-19 so that the recipient can claim credit of the tax paid by the Petitioner.

Whether the Petitioner is entitled to rectify the error committed in Form GSTR-1 due to bonafide mistake?

Observation of the court

Observed that, the Circular allows rectification of the bonafide and inadvertent mistakes committed by the assessee at the time of filing of Forms and submitting Returns is applicable in peculiar and special facts and circumstances. Opined that, the error committed by the Petitioner in the invoices which was carried forward in the relevant forms is clearly a bonafide error, which has occurred due to bonafide reasons, unavoidable circumstances and sufficient cause thus, the Circular is directly and squarely applicable. Held that, the petition be disposed and the Revenue Department is directed to follow the procedure as stated in the Circular to the transactions of Petitioner in the F.Y. 2017-18, 2018-19 and 2019-20. Stated that, though the Circular is only referred to F.Y. 2017-18 and 2018-19, the benefit of the Circular would be given for the F.Y. 2019-20 also, since there are identical errors committed by the Petitioner in the F.Y. 2019-20.

7. A perusal of the aforesaid Circular also indicates that the procedure to be followed in such cases has been prescribed at paragraph-4. In addition to the Circular, the petitioner has also filed an Affidavit satisfying the conditions stipulated in paragraph – 4.1 .1 of the Circular, enclosing the details of the Invoices issued by the petitioner to the 5th respondent. The 5th respondent has filed statement of objections setting out the facts admitting, accepting and re-enforcing the claim of the petitioner with regard to the discrepancies / mismatch in mentioning of the GSTIN Number. 8. Under these circumstances, I am of the considered opinion that it would be just and proper to dispose of this petition directing the respondents 1 to 3 – revenue to follow the procedure prescribed in the Circular and apply the said Circular to the facts of the instant case of the petitioner, 5th respondent and their transactions for the years 2017-18, 2018-19 and 2019-20. It is also necessary to state that though the Circular refers only to the years 2017-18 and 2018-19, since there are identical errors committed by the petitioner not only in respect of the assessment years 2017-18 and 2018-19 but also in relation to the assessment year 2019-20 also, I am of the view that by adopting a justice oriented approach, the petitioner would be entitled to the benefit of the Circular for the year 2019-20 also.

Conclusion

The tribunal has ruled in favour of the assessee and dismiss the appeal

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