RCM PAID BUT NOT DISCLOSED IN GSTR 3B - RELATED JEDGEMENTS

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Astaf Mansuri (Querist)
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06 February 2025 Hello,
I am looking for judicial precedents concerning cases where a party has paid tax under the Reverse Charge Mechanism (RCM) on purchases, but the disclosure in GSTR-3B was inadvertently missed.

If anyone can provide links to these judgments or share the full text, it would be greatly appreciated.

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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12 August 2025 If you have paid tax under the Reverse Charge Mechanism (RCM) but inadvertently failed to disclose it in your GSTR-3B return, there are judicial precedents that address such inadvertent errors. Indian courts have recognized that unintentional mistakes in GST filings, including omissions in GSTR-3B, should not automatically lead to penal consequences, provided the tax has been duly paid and the error is rectified promptly.
Taxscan

Relevant Judicial Precedents
Arupadai Infrastructure vs. Deputy State Tax Officer – 2 (ST) (Madras High Court)

Case Summary: The petitioner challenged an assessment order dated 17.11.2023, primarily on the grounds that they were not given a reasonable opportunity to contest the tax demand on its merits. The petitioner asserted that they were unaware of the proceedings leading to the impugned order until after its issuance and subsequent rejection of a rectification petition. The assessment order in question was based on an inadvertent error in GSTR-3B filing.

Outcome: The Madras High Court set aside the assessment order and remanded the matter for reconsideration, directing the authorities to provide a reasonable opportunity to the petitioner, including a personal hearing.
TaxGuru
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Taxscan
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Taxscan
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Taxscan
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Tvl. Tirupathi Packaging vs. Deputy State Tax Officer (Madras High Court)

Case Summary: The petitioner, a small enterprise, had wrongly filed a return in GSTR-3B by including the input tax credit under RCM when it should have been availed under the regular provisions. The department issued a notice demanding tax and interest without considering the petitioner's explanations.

Outcome: The Madras High Court quashed the demand of tax and interest, recognizing the error as unintentional and emphasizing the need for a fair opportunity to contest such demands.
https://www.taxmann.com

Tvl. Kwatra Karteek vs. Assistant Commissioner (ST) (Madras High Court)

Case Summary: The petitioner contested an order for GST obligation due to non-payment under RCM, attributing the issue to an accidental error during filing Form GSTR-3B. The applicant asserted unfamiliarity with the proceedings directing to the order because of a lapse by their part-time accountant.

Outcome: The Madras High Court set aside the order, highlighting the violation of natural justice principles and the unintentional nature of the error in GSTR-3B filing.
SAG Infotech Official Blog
+2
Taxscan
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Key Takeaways
Inadvertent Errors: Courts have consistently held that inadvertent errors in GSTR-3B filings, especially concerning RCM, should not lead to penal actions if the tax has been paid and the error is rectified.

Opportunity to Rectify: Taxpayers are entitled to a reasonable opportunity to rectify such errors and contest any demands arising from them.

Judicial Relief: High Courts have set aside assessment orders and remanded matters for reconsideration, emphasizing the importance of fair hearing and due process.
https://www.taxmann.com
+4
Taxscan
+4
SAG Infotech Official Blog
+4

Next Steps
Rectify the Error: Ensure that the omission in GSTR-3B is corrected in the subsequent return filings.

Maintain Documentation: Keep records of all communications and documents related to the inadvertent error and its rectification.
Indian Kanoon
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Taxscan
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Taxscan
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Consult a Professional: Seek advice from a qualified tax professional or legal expert to navigate the rectification process and ensure compliance.

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