Taxpayer made to suffer due to a supplier’s error in GSTIN reporting

Last updated: 10 July 2023

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The Madhya Pradesh High Court has ruled that a taxpayer should not be penalised for a supplier's mistake in reporting GSTIN. In this case, the Railway Department incorrectly deposited GST under the wrong GSTIN, causing the taxpayer's Input Tax Credit (ITC) claim to be unreflected. Despite the tax being paid, the Revenue Department issued a demand notice. The court directed that the taxpayer should not suffer and that the Railway Department could seek a refund, as the tax had been received twice.

Court :
Madhya Pradesh High Court

Brief :
The Hon'ble Madhya Pradesh High Court in Agrawal and Brothers v. Union of India [Writ Petition No.14297 of 2020 dated June 13, 2023], while allowing the claim, held that the taxpayer paid tax but his supplier inadvertently deposited the amount of GST in the wrong GSTIN. The Court further noted that it is a settled law that no one can't be made to suffer for the fault of another.

Citation :
Writ Petition No.14297 of 2020 dated June 13, 2023

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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