Bombay High Court Orders Amendment of GSTR-1 for Mahindra & Mahindra’s Input Tax Credit

Railroad Logistics (India) Pvt. Ltd. Vs Union of India & Ors. (Bombay High Court)

Facts:

1. The petitioner filed a petition under Article 226 of the Constitution of India seeking permission to amend its form GSTR-1 for the financial year 2018-19.
2. The petitioner, registered under the Central Goods and Service Tax Act 2017, mistakenly submitted the GST number of Mahindra & Mahindra (Rajasthan) instead of Mahindra & Mahindra (Orissa) in its form GSTR-1.
3. Notices were issued to Mahindra & Mahindra (Orissa) regarding the mismatch in GSTR-2A and GSTR-3B for the financial year 2018-19.
4. Despite reminders to GST authorities, no action was taken, leading the petitioner to approach the court for relief.

Observations:

1. The petitioner argued that the absence of matching provisions as prescribed in the CGST Act should not hinder its ability to amend form GSTR-1.
2. The petitioner cited Section 37(3) and 38(5) of the CGST Act, stating that rectifying an inadvertent error would not cause revenue loss to the exchequer.
3. The court referenced previous decisions, including Star Engineers India Pvt. Ltd. Vs. Union of India, where similar rectifications were allowed due to inadvertent errors.

Conclusion:

1. The court agreed with the petitioner’s contention that rectification should be allowed in cases of inadvertent errors that do not result in revenue loss.
2. Considering the lack of revenue loss and the bona fide nature of the mistake, the court directed the respondents to permit the petitioner to amend its GSTR-1 for the financial year 2018-19 within four weeks.
3. All contentions of the parties were kept open, and once rectified, Mahindra & Mahindra (Orissa) would be entitled to claim Input Tax Credit.

In summary, the Bombay High Court’s decision ensures fairness by allowing rectification of inadvertent errors in GST filings, facilitating smooth compliance with tax regulations.

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