Mere error in filing Form GSTR-3B cannot deny refund under GST

Chandubhai Bhagwandas Patel Vs Union of India (Gujarat High Court)

1. It was the specific case of Mr. Chandubhai Bhagwandas Patel (hereinafter known as the “petitioner”) wherein even though Form GSTR-1 for the month of August 2019 was correctly filed declaring all the relevant details qua outward supplies appropriately, refund of Integrated Tax (‘IGST’) paid upon export of goods was denied to the petitioner due to mistake being committed in Form GSTR-3B for the said month.

2. The brief facts of the case are as under:

• The petitioner runs a sole proprietary concern named M/s Agrogums. The petitioner is engaged in the business of exporting guar gum powder and is a 100% export-oriented unit. During the month of August 2019, the petitioner exported goods upon payment of IGST by way of debiting input tax credit. At the time of filing GST returns for the month of August 2019, appropriate disclosure qua export of goods was made in Form GSTR-1 however, while filing Form GSTR­3B, export of goods made upon payment of IGST was reported under “Row 3.1(a) – Outward taxable supplies” instead of “Row 3.1(b) – Zero rated supplies” of Form GSTR-3B.
• The petitioner upon gaining knowledge of the mistake committed, approached the office of the jurisdictional assessing officer, however could not receive any material assistance from the Department. Subsequently, the petitioner disclosed the details of exports made in the month of August 2019 in Form GSTR-3B of September 2019 alongwith the details of exports made in the month of September 2019 and hence the petitioner ended up paying tax for the exports made in August 2019 twice, i.e. through Form GSTR-3B of August 2019 as well as through Form GSTR-3B of September 2019.
• Under the category of exports upon payment of IGST, the shipping bill filed is deemed to be a refund application in terms of Rule 96 of the CGST Rules, refund of the IGST paid second time through Form GSTR-3B of September 2019 was refunded automatically to the petitioner, however refund of IGST paid first time, e. during the month of August 2019 was still not granted.
• Therefore, the petitioner filed a refund application under the category of “Others” for the month of August 2019. To the utter shock and surprise of the petitioner, the Department rejected the petitioner’s refund application stating the reason that as Form GST PMT-03 is not available in the Department officer’s login, refund shall not be granted. Form GST PMT-03 is a form through which re-credit of GST is made to the original mode of payment.
• Aggrieved by the refund rejection order, the petitioner filed an appeal online on the GSTN portal in Form GST APL-01. The petitioner’s appeal was rejected again on the same grounds that as Form GST PMT-03 is not available in the Departmental officer’s login, refund cannot be granted. In absence of the Goods and Services Tax Appellate Tribunal, the petitioner therefore preferred a writ petition before the Hon’ble Gujarat High Court.

3. The Hon’ble Gujarat High Court held that: