Kerala HC Instructs to Approach Appellate Authority for Rectifying Errors in the GSTR 3B

The Kerala High Court has issued a directive in a writ petition, instructing the petitioner, M/s Brothers Trade Links, to approach the appellate authority under Section 107 of the Goods and Services Tax Act, 2017 (GST Act), seeking permission to rectify an error in Form GSTR-3B.

The petitioner, M/s Brothers Trade Links, approached the court under Articles 226 and 227 of the Indian Constitution, contending the orders passed by the second respondent. The petitioner requested a writ of mandamus, requesting the second respondent to allow the petitioner to correct a mistake that was made while submitting their GSTR-3B Form for the period of February 2018.

Additionally, the petitioner sought a declaration that Circular No.26/26/2017-GST, issued by the fifth respondent, is in violation of the provisions of the Central Goods and Services Tax Act, 2017.

In response to the show cause notice in Form GST DRC-01A, the petitioner explained that there was an uploading mistake in their GSTR 3B. They disclosed a total taxable supply and output tax liability of only Rs. 29,940/-, with an output tax liability of Rs. 4,193/- each under CGST and SGST, whereas the actual total taxable turnover was Rs. 47,03,844.53, with an output tax liability of Rs. 3,32,039.38 each under CGST and SGST. The petitioner also stated that no such mistake occurred in their filing GSTR1 return.

The reply to the show cause notice mentioned that during February 2018, the taxable supply turnover and output tax liability of another taxable person with GSTIN 32CCFPR0040A1ZG were mistakenly uploaded as that of the petitioner. Both returns were uploaded at the same Akshaya Centre, and the incorrect uploading of total taxable supply and output tax liability was due to an oversight by the clerk responsible for the task.

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The single-judge bench presided over by Justice Dinesh Kumar Singh noted that paragraph 4 of Circular No. 26/26/2017-GST allows the rectification of mistakes in the relevant period. Several judgments have also recognized this provision. As the matter involves a disputed question of fact, the court concluded that it cannot decide such matters within the jurisdiction of Article 226 of the Indian Constitution.

Considering all the above-mentioned facts, the bench disposed of the writ petition, and granted the petitioner the liberty to approach the appellate authority under Section 107 of the GST Act to challenge the contended order. The court stated that if the petitioner submits all the relevant documents before the appellate authority, the authority will examine them adhering to the law, and pass an appropriate order.