GST authorities must avoid a blinkered view while adjudicating/assessing the tax liability of the taxpayer

Last updated: 24 January 2023

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Quick Summary

The Karnataka High Court has ruled that GST authorities must adopt a broader perspective when assessing a taxpayer's liability. In a case involving Orient Traders, the court allowed the company to correct errors in its GSTR-3B returns from the initial GST period. The court acknowledged that mistakes were made due to the newness of the GST system and that rectifying them would not prejudice the revenue department or disrupt the input tax credit chain.

Court :
Karnataka High Court

Brief :
The Hon'ble Karnataka High Court in M/s. Orient Traders v. the Deputy Commissioner of Commercial Taxes (Audit) [Writ Petition No. 2911 of 2022 (T-RES) dated December 16, 2022] has permitted the assessee to make the necessary changes to its Form GSTR 3B returns for the months of July, 2017 and March, 2018 and held that, allowing the assessee to make such changes, would not cause any prejudice to the Revenue Department nor would it upset the chain of credit under the Goods and Services Tax ("GST") scheme. Further held that, the authorities must avoid a blinkered view while adjudicating/assessing the tax liability of a dealer under the Central Goods and Services Tax Act, 2017 ("the CGST Act").

Citation :
Writ Petition No. 2911 of 2022 (T-RES) dated December 16, 2022

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