News

AP High Court permits revision in GSTR-3B Form

Shishir Sinha New Delhi | Updated on August 29, 2019 Published on August 29, 2019

The Andhra Pradesh High Court has ruled that the GST Return (GSTR) Form — GSTR-3B — is a statement and a revision option should be provided. Once implemented at the national level, it will be a big relief for a large number of GST assessees — excluding those under composition scheme.

 

As on June 30, there are more than 1.39 crore GST assessees, of which over 17.60 lakh are those who have opted for the composition scheme.

The composition scheme is applicable for those whose annual turnover is up to ₹1.5 crore and ₹75 lakh in States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand and need to pay tax equal to 1 per cent to 5 per cent of the turnover.

All taxpayers, except those registered under the composition scheme, are required to file GSTR-3B and pay tax on a monthly basis. These have to be filed by the 20th day of the following month. Even assessees with ‘NIL’ returns are required to file GSTR-3B. As of now, there is no provision for revision, making things complicated for assessees.

The petitioner, a Vijayawada-based firm Panduranga Stone Crushers, approached the High Court with a plea to permit it to manually rectify GSTR-3B statements for four months — August and December, 2017 and January- February, 2018. It submitted GSTR-3B for the month of July 2017 to March 2018. However, according to the petitioner, while claiming IGST (Integrated Goods and Services Tax, levied on inter-States trade), it inadvertently and by mistake reported IGST input tax credit in a column related to goods and services.

The petitioner contended that since there is no provision in Section 39 (relating to Furnishing of Returns) of the GST Act 2017 or relevant rules, he is entitled to rectify the mistake. However, the Government counsel argued that the provision covers the present contingency because even according to the petitioner’s own showing, there is mention of incorrect particulars and hence, the petitioner has an opportunity under the proviso to rectify the omission but it was not availed earlier. Hence, the petitioner should not be given any relief, argued the Government’s counsel.

Counsel for the petitioner quoted orders of Gujarat High Court and Kerala High Court. The Gujarat High Court struck down the condition which said that last date for availing input tax credit relating to the invoices issued during the period July 2017 to March 2018 is the last date for the filing of the returns in GSTR-3B. Similarly, the Kerala High Court permitted the request of transfer of tax liability from the head ‘SGST’ (State Goods and Services Tax) to ‘IGST’ notwithstanding the contentions of the revenue.

After hearing the arguments from both the sides, the Court permitted the petitioner to rectify GSTR-3B statements for the sought period.

Litigation galore

According to Rajat Mohan, Senior Partner with AMRG Associates, GST is in nascent stages and litigation in the same was anticipated, but a plethora of court rulings harming the basic edifice of GST indicate the haste in which these legislations were conceived and formalised. “The Andhra Pradesh High court granting manual rectification of GSTR -3B statements as an interim relief, would give enough material for other taxpayers to follow the trend and drag the tax office to courts,” he said.

Published on August 29, 2019

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.