"TO ERR IS HUMAN, TO FORGIVE IS DIVINE"

"TO ERR IS HUMAN, TO FORGIVE IS DIVINE" by Abhishek Raja Ram, 9810638155

Whether it's a minor slip-up or a significant misjudgment, errors are an inevitable part of life.

GST Compliances are no EXCEPTION. The importance lies in how we respond to these mistakes.

These few High Court judgments might help you handle cases of human error.

1. The error in the GST filing was corrected to claim ITC; the Court orders manual form rectification.

Orissa High Court in M/s Chintamaniswar Constructions Pvt. Ltd.

(2024) 10 TMI 1102

2. GST authority allowed rectification of GSTR-1 despite time lapse due to genuine mistakes in export invoices.

Calcutta High Court in M/s Nivriya India Pvt. Ltd.

(2024) 10 TMI 1118

3. Where an assessee, not having computer, prepared tax invoice showing amount as Rs. 1,97,047.86 and e-way bill with amount as Rs. 19,70,47,086.00, there was a palpable error in e-way bill, which could be construed to be an human error and thus, assessment order under section 74 of OGST Act, 2017 raising demand for declaring lesser amount of turnover in return was to be remitted back.

Orissa High Court in Jena Trading and Co.

(2023) 74 GSTL 199

4. Where the assessee, while filing returns, had inadvertently shown the TDS number of the awarder in place of the awarder's GST number, the assessee was to be allowed to make rectification.

Patna High Court in Kamladityya Construction Pvt. Ltd.

(2024) 86 GSTL 48

5. Petitioner allowed to rectify GST returns beyond time limit u/s 39(9) as no revenue loss. Respondents to open portal for amendment.

Bombay High Court in M/s Aberdare Technologies Pvt. Ltd.

(2024) 8 TMI 142 :: 2024:BHC-AS:29755-DB

6. Rectification of GSTR-1 return - subject to final outcome of the writ petition, we permit the petitioner to rectify the return in GSTR 1 Form for the period November'2017.

Delhi High Court in Vadehra Builders Pvt. Ltd.

(2019) 11 TMI 890

7. Rejection of rectification petition - turnover of the petitioner was erroneously reported in the GSTR 1 return - The High Court acknowledges the petitioner's claim regarding the erroneous turnover reported in the GSTR 1 return. Since the petitioner did not file the annual return for the relevant assessment period, the error was not rectified.

The High Court finds that the tax liability primarily arose due to the turnover reported in the GSTR 1 return. Considering the interest of justice, the High Court deems it necessary to provide the petitioner with an opportunity to establish the correct turnover amount.

Madras High Court in Parthasarthy Narasimhan

(2024) 5 TMI 400

GST Department's view:

The rectification cannot lead to a reduction in tax liability if the mistake was identified after initiation of any scrutiny or audit proceedings.

Author's View:

In the complex landscape of GST compliance, mistakes are bound to happen. Errors in tax invoices, incorrect tax rates, or wrong ITC claims are commonly encountered mistakes. A balanced approach is needed to correct mistakes while safeguarding revenue interests.

I hope you will find this useful.

ARR