High Court provides relief for GSTR-3B Return Rectification

Arjuna (Fictional Character): Krishna, the taxpayers are curious about the recent judgement by the Kerala High Court allowing GSTR 3B rectification. Please tell us about the decision.

Krishna (Fictional Character): Arjuna, the Kerala High Court on 8th December 2023, permitted the rectification of mistake in GSTR 3B filed by the petitioner in the Case of Chukkath Krishnan Praveen vs. State of Kerala, where mistakes were made in tax head while claiming ITC.

The facility to amend GSTR 3B or rectify the mistakes in GSTR 3B has not been made available to all taxpayers and thus the taxpayers now have to take the route of courts and litigation for availing the facility to rectify the return.

Arjuna (Fictional Character): Krishna,what were the facts of the case, where such judgment was passed?

Krishna (Fictional Character): Arjuna, the appellant had mistakenly accounted Input Tax Credit of IGST instead of CGST& SGST in the GSTR-3B return. The petitioner filed a writ petition requesting for either rectification of GSTR-3B return or refund of IGST ITC and reconsideration of assessment orders. After some arguments, the Learned Counsel submitted that the petitioner committed some errors in filing GSTR-3B, based on which the assessment order was passed. The counsel further submitted that the representation made by the petitioner for rectification of GSTR 3B be considered as rectification application and necessary orders shall be passed.

Arjuna (Fictional Character): Krishna, what are the common mistakes the taxpayers make in filing their GSTR-3B?

Krishna (Fictional Character):Arjuna, the following are the most common mistakes made by taxpayers in filing their GSTR-3B:

1. Input Tax Credit of IGST claimed under CGST and SGST head, and vice versa.
2. Sales Return erroneously accounted for as Purchase, consequently GST on same included in Input Tax Credit instead of reducing it from Total Outward Liability.
3. Purchase Return erroneously accounted for as sales, increasing the outward supply and tax liability in GSTR 3B instead of reducing it from Input Tax Credit.
4. Clerical errors while plotting amounts.

Arjuna (Fictional Character): Krishna, what should one learn from this?

Krishna (Fictional Character): Arjuna, The Kerala High Court's recent ruling, permitting the rectification of GSTR 3B, has instilled hope among numerous taxpayers who had faced similar challenges in their GSTR-3B filings. The High Court judgement is however based on the facts of the cases, which clearly showed that the discrepancies in GSTR 3B of the appellant was on account of genuine mistakes and not intentional in nature. The judgement offers a beacon of optimism for taxpayers seeking rectification in their GSTR 3B returns. Those in need of redressal can cite this precedent in support of their plea.