GSTR 3B Filing Error: Madras HC quashes GST Demand, allows to Rectify Returns and Hearing [Read Order]

The High Court permitted to file a rectified return in accordance with GST law

In a recent ruling, the Madras High Court allowed to rectify the inadvertent error of GSTR 3B returns as claimed by the assessee and also a fresh personal hearing on 10% pre-deposit condition. Bright Hardware, the assessee filed the writ petition through its counsel Mr.S.Kannan challenging the GST ( Goods and Services Tax ) Demand order on the ground that the assessee did not have a reasonable opportunity to contest the GST demand on merits. The assessee asserted that the assessee had engaged a part time accountant to handle GST compliances and was therefore unaware of proceedings culminating in the impugned GST order, the present writ petition was filed. The counsel for the assessee, submitted that an inadvertent error was committed while filing the GSTR 3B returns for September 2018 in as much as an entry was made in column 4(A)(3) relating to inward supply liable to reverse charge instead of reporting in column 4(A)(5) relating to all other ITC. According to the counsel, the entire GST Liability arose as a consequence of this inadvertent error. He sought another opportunity and, on instructions, submitted that the petitioner agreed to remit 10% of the disputed GST demand as a condition for remand. The respondents submitted that the principles of natural justice were complied with by issuing notice in Form ASMT 10, intimation, show cause notice dated 06.10.2023 and by offering a personal hearing. The bench of Justice Senthilkumar Ramamoorthy acknowledged the fact that the error was inadvertent while filing the GSTR 3B return for the month of September 2018. It was observed that prima facie, it appeared that there is merit in the contention of the assessee. However, the court decided to put him on terms. While set aside on condition of pre-deposit, the High Court permitted to file a rectified return in accordance with GST Acts. And on the receipt of the deposit, the department was directed to provide a reasonable opportunity to the petitioner, including a personal hearing, and thereafter issue a fresh order within a period of three months.

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