Ambica Auto Sales And Service & Anr Vs Union Bank of India & Anr. (Gujarat High Court)
Gujarat High Court held that amendment/ rectification of inadvertent error in GST returns [Form GSTR-1 and GSTR-3B] is permissible if no loss to revenue would be caused. Accordingly, petition is allowed and returns are permitted to be amended.
Facts- The present petition is filed by the petitioner. It is mainly contested that while the amount of input tax credit was proposed to be reversed as per the Show Cause Notice was Rs.34,26,33,614/-, however, the amount of tax paid by the petitioners which was proposed to be appropriated towards such reversal was Rs.42,75,68,473/-. Thus, it is submitted that the amount of tax paid was higher than the amount of input tax credit sought to be reversed as per the Show Cause Notice itself, hence in essence, there was no demand proposed in the Show Cause Notice. It is further submitted that even if, hypothetically, no input tax credit is reversed by the buyer vis-à-vis issuance of credit notes by the vendor, it is the vendor, who is to be disallowed deduction of such discount as per the provision of Section 15(3)(b) of the Central / Gujarat Goods and Services Tax Act, 2017, which allows a seller to claim deduction for discount only if the buyer reduces input tax credit. This is further fortified by Section 43 of the GST Acts, which makes the seller liable for disallowance of deduction in respect of credit notes if the buyer does not reverse input tax credit. It is submitted that there is no statutory provision under the GST Acts mandatorily requiring the buyer to reduce input tax credit on the basis of credit notes issued by the seller. Thus, it is urged that the impugned action of the respondents is required to be quashed and set aside.
