SC backs businesses' right to fix GST filing errors, asks CBIC to revise timelines
The Supreme Court has directed the CBITC to re-examine the GST filing correction timelines, emphasizing that clerical errors should be fixable to prevent undue burden on businesses. This ruling reinforces the principle that tax compliance should be practical. Experts hail the decision as a significant relief for businesses facing ITC issues due to minor errors.
Mar 28, 2025, 10:35 IST
In a significant ruling that reinforces the businesses’ right to rectify human or arithmetical errors in GST filings, the Supreme Court has asked the Central Board of Indirect Taxes and Customs (CBITC) to revisit the provisions and fix timelines for correcting such bonafide mistakes in tax filings.
A bench comprising Chief Justice Sanjiv Khanna and Justice Sanjay Kumar while refusing to interfere with the Bombay High Court’s judgment that ruled in favour of an assessee (in the case CBITC vs M/S Aberdare Technologies), it said that HC order is “in fact, just and fair, as there is no loss of revenue.”
The HC had allowed the rectification of GST returns either electronically or manually for the company.
The CBITC must re-examine the provisions/timelines fixed for correcting the bonafide errors. Timelines should be realist as lapse/defect invariably is realized when input tax credit is denied to the purchaser when benefit of tax paid is denied. Purchaser is not at fault, having paid the tax amount. He suffers because he is denied benefit of tax paid by him. Consequently, he has to make double benefit of tax paid by him,” the apex court said.