High Court Allows GSTR 3B Rectification, Allowing Adjustment of Wrong Tax Payment in IGST to CGST and SGST Liability

High Court Allows GSTR 3B Rectification, Allowing Adjustment of Wrong Tax Payment in IGST to CGST and SGST Liability

Brief facts of the case are that the petitioner is a two-wheeler dealer having a business in the State of Bihar. He was purchasing two-wheelers from the manufacturer, and the manufacturer is outside the State of Bihar. Therefore, there would be an IGST transaction.

For the month of April 2019, GSTR 1 was filed on 10.05.2019, and GSTR 3B was filed on 20.06.2019. In filing GSTR 1, there is no error committed by the petitioner. But due to a mistake in the filing of GSTR-3B for the month of April 2019, an excess amount of GST tax has
been paid in IGST instead of CGST and SGST.

In this regard, the petitioner had submitted an application to rectify GSTR 3B on par with the figure mentioned in GSTR 1 on 17.05.2019, the same was rejected on 06.05.2020. Resultantly, a show cause notice was issued for assessment of GST DRC-01 on 31.05.2024. Petitioner had submitted a return submission on 16.06.2024. In this backdrop, the impugned order has been passed by the concerned authority on 23.08.2024 while demanding a certain amount of tax under the heading of SGST and CGST for the month of April 2019.

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Petition demands the rectification of GSTR 3B on par with the GSTR 1

Learned counsel for the petitioner relied on the decision of the Bombay High Court dated 29.07.2024, passed in writ petition no. 7912 of 2024 in the case of Aberdare Technologies Pvt Ltd & Anr vs. Central Board of Indirect Taxes & Customs allowing GSTR-1 and GSTR-3B rectification. The Central Board of Direct Taxes and Customs preferred Special Leave Petition (civil) Diary no. 6332 of 2025 against the same, and it was dismissed on 23.01.2025.

High Court Allows Rectification

High Court allowed rectification to the extent of filling up certain figures in the GSTR 3B return, and it does not tally with the GSTR 1. The concerned authorities are hereby directed to rectify form GSTR 3B on par with the contents of GSTR-1 within a period of one month from the date of receipt of this order.