Recently, the Supreme Court observed the growing concerns over the denial of Input Tax Credit ( ITC ) due to clerical or arithmetical errors in GST return filings and issued notice to the Central Board of Indirect Taxes and Customs ( CBIC ) to examine the matter further. Master GST Like a Pro – Before It’s Too Late – Click Here The case arose from a Special Leave Petition ( SLP ) filed by the Union of India against Brij Systems Ltd., challenging a Bombay High Court decision in WP No. 783/2022 dated July 2, 2024.

The High Court had ruled in favor of the taxpayer, allowing rectification of ITC mismatches stemming from genuine errors in returns. Read More: WhatsApp Messages revealed ₹200 crore Tax Evasion: FM responds to Privacy Concerns During the hearing on March 24, 2025, the Supreme Court condoned the delay in filing the SLP but ultimately dismissed it on merits. The Court noted that thereby reinforcing its stance on the issue.

The bench comprising Chief Justice and Justice Sanjay Kumar, and Justice K.V. Viswanathan observed that it had already rejected a similar SLP in Central Board of Indirect Taxes and Customs v. M/s Aberdare Technologies Pvt. Ltd., but did not stop at dismissal. Master GST Like a Pro – Before It’s Too Late – Click Here The court observed that once statutory deadlines under Sections 37(3) and 39(9) have passed, the GST framework does not currently accommodate corrections of clerical errors.

The Court flagged the issue as a matter of systemic concern and pointed out that such errors are usually made by sellers in return filings but the brunt is faced by purchasers who lose their ITC eligibility without fault. Read More: Last Chance to Correct Your Taxes: File Updated ITR by March 31, 2025 to Avoid Higher Penalties To assist in a more thorough resolution, the court appointed Senior Advocate Mr. Arvind P. Datar as Amicus Curiae.

The court sought CBIC’s response on the possibility of enabling post-deadline corrections for genuine mistakes in GST returns. The case is scheduled to be heard again in the week commencing April 28, 2025.