DIVYA S.R. VS UNION OF INDIA

The petitioner, identified as an assessee under the Central Goods and Services Tax Act/State Goods and Services Tax Act of 2017, has brought forth a writ petition before this Court. In this petition, the petitioner seeks a writ of mandamus, specifically directing the 6th respondent to rectify an error related to input tax credit (ITC) of Integrated Goods and Services Tax (IGST) amounting to Rs. 1,14,957/-. This credit was erroneously claimed under both Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) for the period spanning from July 2017 to March 2018, against the petitioner’s output tax liability for the same period.

The fiscal year in question is 2017-18. The petitioner acquired IGST tax credit through interstate inward supply of goods. The total IGST credit, as evidenced by the Goods and Services Tax Return (GSTR) 2A, amounted to Rs. 1,14,957/-. However, while filing the monthly return in GSTR 3B for July 2017, the petitioner inadvertently made a mistake by claiming the entire input tax credit of Rs. 1,14,957/- under CGST and SGST instead of correctly claiming it under IGST.

This inadvertent error has led to a situation where the petitioner wrongly claimed the IGST credit under CGST and SGST, thereby affecting the accurate calculation of their tax liability for the specified period. The petitioner now seeks judicial intervention to rectify this error and direct the concerned authority to properly adjust the IGST credit against their output tax liability, in accordance with the appropriate provisions of the tax laws.

In essence, the petitioner is seeking relief from the Court to rectify a procedural mistake that has led to an incorrect claim of input tax credit, ultimately affecting their tax liability under the Central and State GST Acts for the period in question.

The petitioner, who is a taxpayer governed by the Central Goods and Services Tax Act/State Goods and Services Tax Act, 2017, has initiated legal action seeking a writ of mandamus from the court. The purpose of this writ is to compel the 6th respondent to rectify an error regarding the utilization of input tax credit (ITC) for Integrated Goods and Services Tax (IGST), amounting to Rs. 1,14,957/-, mistakenly claimed under Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) during the period from July 2017 to March 2018.

During the financial year 2017-18, the petitioner received IGST tax credit through interstate inward supply of goods, totaling Rs. 1,14,957/-. However, while filing monthly returns in GSTR 3B for July 2017, an inadvertent error led to the entire input tax credit being claimed under CGST and SGST, instead of IGST. Consequently, an assessment order (Ext.P1) was issued based on this erroneous claim. The petitioner subsequently filed a rectification application (Ext.P4) under Rule 89(1)(A) of the Goods and Services Tax Rules, 2017, on 21.12.2023, seeking correction of this mistake. However, as of the current date, no decision has been made on the rectification application.

The petitioner’s counsel argues that the 6th respondent should be directed to review and decide upon the rectification application (Ext.P4) without delay, and until a decision is reached, no coercive measures should be taken against the petitioner for the tax assessed in the Ext.P1 order.

On the other hand, Smt. Jasmine M.M., representing the government, acknowledges the filing of the rectification application (Ext.P4) on 21.12.2023, but emphasizes that it is a relatively recent submission. Nonetheless, she agrees that the court may direct the 6th respondent to consider the petitioner’s application promptly.

In summary, the petitioner seeks a correction of an erroneous claim of input tax credit, directing the tax authority to consider the rectification application, and a halt on any coercive measures for tax recovery until a decision is made on the rectification request. The government does not contest the need for consideration of the rectification application but emphasizes the recent submission date.

The petitioner, an assessee under the Central Goods and Services Tax Act/State Goods and Services Tax Act, 2017, filed a writ petition seeking a mandamus to direct the 6th respondent to adjust input tax credit of IGST wrongly claimed under CGST and SGST for the period July 2017 to March 2018. In the financial year 2017-18, the petitioner received IGST tax credit through interstate inward supply of goods, amounting to Rs.1,14,957/-. However, due to a mistake in filing monthly returns, the petitioner claimed this credit under CGST and SGST instead of IGST. Consequently, an assessment order was passed based on this error.

The petitioner filed a rectification application on December 21, 2023, as per Rule 89(1)(A) of the Goods and Services Tax Rules, 2017, seeking correction. However, as of the hearing date, no decision had been made on the rectification application. The petitioner requested the court to direct the 6th respondent to consider and decide on the rectification application. The Government Pleader acknowledged the filing date of the application and agreed that the 6th respondent should consider it in accordance with the law.

After considering the submissions and facts of the case, the court disposed of the writ petition with a direction to the 6th respondent to expedite the consideration of the rectification application and pass necessary orders. It was emphasized that the petitioner should have an opportunity for a hearing before the final decision is made on the application. Additionally, until a final decision is reached on the rectification application, no coercive measures should be taken against the petitioner for the tax amount assessed in the previous order.

Any pending interlocutory application in the writ petition was dismissed.

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DIVYA S.R.

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Kerala High Court

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