GST UPDATE

Desk of CA. Praveen Sharma

Series- 435

Inadvertently Errors in GSTR-3B

Good Judgement save it 

1- Delhi HC in the case of Instakart Services Private Limited vs Salsa Tax Officer.

2- The petitioner’s tale of woe stems from an error that had crept in its returns (FORM GSTR-3B) filed for the month of September 2017. 

3- The petitioner had erroneously typed its liability for tax under the CGST Act as Rs. 32,33,36,855/- instead of Rs. 3,23,36,855/-. It discharged its liability by using the available balance of ITC in the electronic credit register; an ITC of Rs. 29,10,00,000/- was used for discharging the said liability, which the petitioner claims as an apparent error.

4- No defined mechanism to rectify the submitted FORM GSTR-3B, which was filed for the month of September, 2017. However, the petitioner immediately reversed the ITC that was used for discharging the overstated liability.

5- Held, if there is an inadvertent or typographical error that has crept in any returns, the taxpayer cannot be mulcted with the tax liability in excess of what is due and payable. It is apparent that the explanation provided by the petitioner has not been considered.

In view of the above, we are inclined to quash the SCN. We consider it apposite to direct the concerned authority to pass an appropriate order.

It is clarified that no coercive steps would be taken against the petitioner for enforcing the demand as projected in the show cause notice or any order that may be passed pursuant thereto till the next date of the hearing.

Check the Draft reply of the GST Notice and Appeal format in our EdataB

Stay tuned and Save my number for any query +91-9871530610.

CA. Praveen Sharma

Twitter: https://twitter.com/capraveensh