Facts of the Case

The petitioner company, Techno Waxchem Private Limited, filed a writ petition before the Calcutta High Court against the Goods and Services Tax Council and other CGST/State GST authorities, seeking a direction to permit correction of its GSTR-1 Form, either manually or online, under Section 38(5) of the GST Act, 2017. The petitioner contended the mistake in filing was genuine and bona fide. The Department opposed the relief, pointing out that the petitioner had already been given one opportunity to correct a similar mistake earlier, and that this was the second occasion such an error had occurred. The petitioner relied on an earlier Division Bench judgment of the same High Court dated 31.03.2023 in Abdul Mannan Khan v. The Goods and Services Tax Council & Ors. (FMA 142 of 2022 with CAN 2 of 2021), where manual filing of a corrected GSTR-1 was permitted in the case of a first-time mistake, with a direction that the authorities upload the requisite details within six weeks of manual submission. The Department distinguished that ruling on the ground that it dealt with a single, first-time error and not a repeated mistake by a corporate assessee assisted by professionals. The matter was heard and disposed of by a Single Judge of the Calcutta High Court on 20.12.2023.

Issues Involved

  1. Whether a taxpayer who has already availed one opportunity to correct a GSTR-1 mistake can be permitted a second manual correction under Section 38(5) of the GST Act.
  2. Whether the Division Bench ruling in Abdul Mannan Khan, rendered for a first-time error, could be extended to a repeat mistake.
  3. What conditions, if any, should attach to permitting a second manual correction where the petitioner is a company presumably assisted by professional advisors.

Petitioner's Arguments

  • The mistake made in filing the GSTR-1 Form was genuine and bona fide and deserved to be corrected for accuracy of tax records.
  • Reliance was placed on the Division Bench judgment in Abdul Mannan Khan v. The Goods and Services Tax Council & Ors., where manual filing of a corrected GSTR-1 was permitted with a six-week upload direction.

Respondent's Arguments

  • The petitioner had already been given an opportunity to correct a similar mistake once before, and this was the second instance of such an error, which should not be entertained.
  • The Division Bench judgment relied upon by the petitioner (Abdul Mannan Khan) was distinguishable as it dealt with a single, first-time mistake and not a repeated error.

Court Order/Findings

  • In the interest of justice, and considering the guidelines laid down in the Abdul Mannan Khan order, the petitioner was permitted to file the corrected GSTR-1 Form manually.
  • Since the petitioner is a company that would have been availing the services of legal professionals and tax consultants, the repeated mistake could not be condoned unconditionally, and permission to correct was made conditional on payment of costs.
  • Both the State and Central GST authorities were directed to allow the petitioner to file the corrected GSTR-1 Form manually and to take all necessary steps after receipt of the corrected form.
  • The petitioner was directed to pay costs of Rs.25,000 to the High Court Legal Services Committee, Calcutta, within ten days, and to file proof of payment along with the corrected GSTR-1 Form.
  • The order was expressly clarified to have been passed allowing the correction only in view of the exceptional facts and circumstances of the case.

Important Clarification

Manual correction of a GSTR-1 return under Section 38(5) of the GST Act may be permitted by the Calcutta High Court even for a second, repeated bona fide mistake, but such indulgence — particularly for a corporate taxpayer assisted by professionals — will ordinarily be conditional on payment of costs to the High Court Legal Services Committee, unlike the unconditional relief typically granted for a first-time error.

Sections Involved

  • Section 38(5) of the Goods and Services Tax Act, 2017 — furnishing/correction of return details (GSTR-1).
  • Article 226 of the Constitution of India, 1950 — writ jurisdiction invoked.

Decision – In Favour of

Assessee, though conditionally. The petitioner secured permission to manually correct its GSTR-1 Form, but only on payment of Rs.25,000 as costs, reflecting a qualified rather than an unconditional win.

Related Case Laws

No directly on-point case notes are currently published on this site.

Case Details

  • Court: High Court at Calcutta
  • Case No.: WPA 27326 of 2023
  • CNR: Not available
  • Coram: Hon'ble Justice Md. Nizamuddin
  • Decision Date: 20.12.2023
  • Disposal Nature: Disposed of; manual correction of GSTR-1 form permitted subject to cost

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