M/S Mahalaxmi Infra Contract LTD. VS Goods And Service Tax Council & Others
IS IT OKAY FOR AN ASSESSEE TO AMEND GSTR-1 TO RECTIFY THE MISTAKE OF MENTIONING INCORRECT GSTIN NUMBER OF THE SUPPLY RECEIPIENT?
Introduction
This is a matter where the writ applicant company (Mahalaxmi Infra) while filing the GST returns made a clerical error by entering the number of the supply recipient incorrectly. The matter pertains to filing of GSTR 1 of January, 2019 in March, 2019. This error was realized or noticed in only in June, 2021. The applicant (petitioner) requested the department to allow make changes in the GSTR 1 of the relevant period which was rejected by the department being time barred.
Facts of the case
The applicant / petitioner is engaged in the business of mining. In the year 2018 the company was engaged by Eastern Coalfields Ltd. for providing services in relation to removal and re-handling of overburden from Dahernangi OC patch. During the filing of January 2019 GSTR in March, 2019, an inadvertent error occurred in mentioning the GSTIN number of the service recipient. This mistake or error was noticed or realized only in June, 2021. Due to this mistake the transactions between the applicants (petitioner) and the Eastern Coalfields Ltd. was not reflected in the GSTR-2A of Eastern Coalfields Ltd. but was shown in GSTR- 2A of MIPLNKAS. The applicant (petitioner) approached the department to allow rectification in Form GSTR-1 which was rejected. According to the department the GSTN portal does not allow amendments of the returns after filing of annual return GSTR-9. Accordingly, the applicant (petitioner) filed this present writ in the High Court.
Issue
If the revenue is not affected, will the assessee be allowed to make rectification in the GSTR-1 even after limitation?
Arguments
The applicant (petitioner) approached the department to allow rectification in Form GSTR-1 as the error was noticed or realized at a later date beyond the filing of annual return of GSTR-9. The applicant / petitioner knew that by
Their action there will be no loss of revenue to the department and the position would be neutral for the revenue so the rectification be allowed for the transactions to be reflected in the GSTR-1 of the service recipient Eastern Coalfields Limited. The service recipient are not at fault so why they should be put to any discomfort for the mistake done by the applicant /petitioner company.
The Revenue side submits that the rectification in Form GSTR-1 should have been done in the prescribed time limit following the end of financial year to which such details pertain. In column 9 of Form GSTR-1 there is provision for amendment of such errors or incorrect entries pertaining to invoice, credit notes, and debit notes as also GSTIN number which the applicant / petitioner failed to cash on.
Observation and Judgement
The court observed and noted that the instant case does not present any additional tax impact or loss of revenue to the State Exchequer and the corrections in GSTR-1 and GSTR-2 would allow the respondent no.5 (Eastern Coalfields Limited) to get the ITC and allow the respondent no. 6 (MIPL-NKAS (JV)) to facilitate this availing of ITC. The court was of the view that the interest of Justice would be served if the applicant (petitioner) is allowed to make the necessary correction in GSTR-1 Form for January 2019. The GSTN should communicate with respondent’s no. 5 and 6 before opening the online portal for a limited period to facilitate the corrections to GSTR-2A Form if it is possible and without any technical glitch. If there is a problem in online portal then a manual mode could be allowed by GSTN.
The corrections are to be made within 8 weeks of the receipt of this order. The Writ Petition is allowed in the manner and to the extent indicated here.
It is left to the Respondent no.5 (Eastern Coalfields Limited) to claim interest from the applicant (petitioner) over ITC which it had to reverse owing to the error in filing of GSTR-1 in March 2019, where the applicant / petitioner did not mention the GSTIN of the respondent no.5 (Eastern Coalfields Limited).
Conclusion
The applicant / petitioner did not mention the GSTIN of the service recipient Eastern Coalfields Limited and the problems galore started. The Eastern Coalfields could not avail its ITC as the GSTIN did not match. The problem occurred due to a clerical mistake or error.
The clerical work though simple has to be done or carried out with care. This is the reason why good staff should be hired if even if more remuneration has to be paid. Mediocre staff will give you miserable returns and poor results. Spend well on the staff and rest be assured to get honourable returns.
