Inadvertent inclusion of turnover of sister concern in GSTR-1 hence rectification of GSTR-1 permitted

Sanghvi Metal Corporation Vs Union of India & Ors (Gujarat High Court)

Gujarat High Court permitted the petitioner to rectify Form GSTR-1 due to inadvertently showing the turnover of sister concern in Form GSTR-1 resulting into difference in outward supplies declared in Form GSTR-1 and Form GSTR-3B.

Facts- The petitioner is a sole proprietorship concern engaged in the business of trading of iron and steel related goods and duly registered under the provisions of Central/ State Goods and Service Tax Act, 2017.

The respondent No.4 issued a show-cause notice dated 29.9.2023 in Form GST DRC-01 calling upon the petitioner to show cause as to why tax amounting to Rs.40,32,390/- should not be demanded and recovered along with interest and penalty on the ground that there is a difference in the outward supplies declared in Form GSTR-01 and outward supplies as per Form GSTR-3B.

The respondent No.5, passed an order-in-original dated 20.12.2023 in Form GST DRC-07 determining tax demand of Rs.40,27,272/- along with interest of Rs.44,70,272/- and interest on penalty. The appellate authority dismissed the appeal on the ground of limitation. Being aggrieved, the present writ is filed.

Conclusion- Held that the petitioner has inadvertently shown the turnover of sister concern in the Form GSTR-1 filed for the third quarter of the Financial Year 2017-18 and, therefore, such mistake is required to be rectified. The petition, therefore, succeeds and is accordingly allowed. The impugned order dated 12.02.2025 in GST APL-04 issued by the respondent no. 5 is quashed and set aside. The petitioner is permitted to file rectified Form GSTR-1 within a period of four weeks from today, which shall be accepted by the respondent manually and processed accordingly, in accordance with law.