GST and Indirect Tax : High Court Allows Assessee's Petition on Rectification of GSTR-1 Statement

GST and Indirect Tax : High Court Allows Assessee's Petition on Rectification of GSTR-1 Statement

In a recent decision, assessee "Z" has been able to obtain the relief against GST Department. 

The subject matter of the case was regarding permission to  rectify the uploaded GSTR 1 statement in GST portal for the periods August, 2017, November, 2017, December, 2017 and January, 2018 regarding input tax credit. 

One can note that "Form GSTR-1 is a monthly/quarterly Statement of Outward Supplies to be furnished by all normal and casual registered taxpayers making outward supplies of goods and services or both and contains details of outward supplies of goods and services. Every registered taxable person, other than an input service distributor/ composition taxpayer/ persons liable to deduct tax u/s 51 / persons liable to collect tax u/s 52 is required to file Form GSTR-1, the details of outward supplies of goods and/or services during a tax period, electronically on the GST Portal." [Refer https://tutorial.gst.gov.in/userguide/returns/GSTR_1.htm] 

The rectification petition filed by Z was rejected by the authority concerned citing delay and absence of provision to entertain rectification. 

High Court directed the Department to permit the Z to upload the rectified GSTR 1 statement within a period of four weeks.

It was held that right to correct mistakes in the nature of clerical or arithmetical error is a right that flows from right to do business and should not be denied unless there is a good justification and reason to deny benefit of correction. Software limitation itself cannot be a good justification, as software are meant to ease compliance and can be configured. 

Case reference is Assistant Commissioner of CGST and Central Excise v. Akshaya Building Solution [2026] GCtR 390 (Madras).