Facts of the Case:
In this case, the petitioner had filed GSTR-1 returns for the months of June 2022 to September 2022. Due to an inadvertent clerical error, the petitioner incorrectly uploaded the GSTIN of Kerala unit (i.e. Respondent No. 5) instead of the correct GSTIN of Tamil Nadu/Chennai unit (i.e. Respondent No. 4).
As a result of this mistake, Respondent No. 4 was unable to avail Input Tax Credit (ITC) on the supplies received. They withheld a total amount of ₹71,26,070 along with interest of ₹19,45,219 from payments due to the petitioner. The petitioner became aware of the error only when Respondent No. 4 sent an email dated 28.12.2023 highlighting the mismatch. Upon discovering the mistake, the petitioner submitted a representation to permit rectification/amendment of GSTR-1 for the relevant period.
The petitioner relied upon several judgments permitting correction of bona fide errors in GST returns beyond statutory deadlines, including NRB Bearings Ltd. v. CST, NRB Bearings Ltd. v. CST, Star Engineers Pvt. Ltd. v. UOI, Aberdare Technologies Pvt. Ltd. v. CBIC.
Issue:
Whether the petitioner is entitled to amend/rectify GSTR-1 for the period June 2022 – September 2022 to correct a bona fide GSTIN error, even though the statutory time limit for rectification under Sections 37(3) and 39(9) of the CGST Act has expired, particularly when there is no loss of revenue to the Government?
Held that:
The Court observed that Courts across jurisdictions have consistently held that where the error is inadvertent, there is no loss of revenue, and tax has already been discharged, technical restrictions of the GST portal should not impede substantive justice. Further, in the case of Star Engineers (Bombay HC) , the Court hold that rectification must be permitted even beyond statutory deadlines when revenue neutrality is established.
The Court held that technical limitations of the GST portal cannot override taxpayers’ substantive rights, especially when the Government suffers no tax loss. Rectification of GSTR-1 was therefore directed to be permitted, following the ratio laid down in earlier High Court judgments.
The High Court held in favour of the petitioner, relying heavily on the Bombay High Court decisions in NRB Bearings Ltd. and Aberdare Technologies Pvt. Ltd., which involved identical factual circumstances.
The Court accordingly allowed the petition and directed the respondents to permit rectification of GSTR-1 for the period June–September 2022 to correct the wrongly entered GSTIN.
Case Name: M/s H.S. CARRIES v. STATE OF KARNATAKA & ORS. dated 04.11.2025
