Union Of India VS Bharti Airtel Ltd

This case revolves around an appeal stemming from a ruling dated 05.05.2020 by the High Court of Delhi in W.P. (C) No.6345 of 2018. In this ruling, the High Court granted the writ petition filed by respondent No.1 and interpreted paragraph 4 of Circular No. 26/26/2017­GST dated 29.12.2017 issued by the Commissioner (GST), Government of India, Ministry of Finance, Department of Revenue, Central Board of Excise and Customs, GST Policy Wing. The interpretation essentially loosened the restrictions imposed by the circular regarding the rectification of Form GSTR­3B for the period in which an error had occurred. The High Court permitted respondent No.1 to rectify such errors.

The case revolves around a writ petition filed in response to Circular No. 26/26/2017-GST, issued by the Commissioner (GST), Government of India, which restricted the rectification of Form GSTR-3B for a specific period. The High Court of Delhi allowed the petition and read down the circular, permitting the rectification of Form GSTR-3B for the period from July to September 2017. Additionally, the court directed the appellant to verify and give effect to the rectified claims within two weeks.

This legal dispute arises from the implementation of the Central Goods and Services Tax Act, which came into effect on July 1, 2017. Alongside this act, Notification No.10/2017 was issued, introducing Rules 59, 60, and 61 of the Central Goods and Services Tax Rules, along with various forms including GSTR-1, GSTR-2, GSTR-2A, GSTR-3, and GSTR-3B.

The matter also involves Notification No.17/2017-Central Tax, which amended Rule 61 by altering the wording of Rule 61(5) and introducing Rule 61(6). Rule 61(5) originally allowed the furnishing of Form GSTR-3B in lieu of GSTR-3 under certain circumstances and conditions as notified by the Commissioner.

This appeal stems from a decision made by the High Court of Delhi on May 5, 2020, regarding Writ Petition (Civil) No.6345 of 2018. The High Court ruled in favor of the respondent and interpreted Circular No. 26/26/2017­GST issued by the Commissioner (GST), Government of India, Ministry of Finance, Department of Revenue, Central Board of Excise and Customs, GST Policy Wing. The court allowed rectification of Form GSTR­3B for the period from July to September 2017, which was previously restricted by the circular. Additionally, the court directed the appellant to verify and implement the rectified form within two weeks of its submission.

This legal issue arises from the enactment of the Central Goods and Services Tax Act, 2017, which came into effect on July 1, 2017. Alongside this act, Rules 59, 60, and 61 of the Central Goods and Services Tax Rules, 2017, were implemented, including various forms such as GSTR­1, GSTR­2, GSTR­2A, GSTR­3, and GSTR­3B.

Of significance is Notification No.17/2017­Central Tax dated July 27, 2017, which amended Rule 61, specifically altering Rule 61(5) and introducing Rule 61(6). Initially, Rule 61(5) allowed for the filing of Form GSTR­3B in certain circumstances as notified by the Commissioner. However, this rule was substituted entirely, and Rule 61(6) was added, detailing the electronic generation of Part A and Part B of Form GSTR­3 based on prior filings and liabilities.

The appellant challenged the interpretation of these rules by the High Court, particularly regarding the rectification of Form GSTR­3B. The Court’s decision in favor of the respondent allowed rectification for the specified period and mandated the appellant to verify and implement the rectified form within a stipulated timeframe.

The case revolves around a writ petition filed in the High Court of Delhi, concerning Circular No. 26/26/2017-GST issued by the Commissioner (GST), Government of India, Ministry of Finance, Department of Revenue, Central Board of Excise and Customs, GST Policy Wing. This circular restricted the rectification of Form GSTR-3B, a crucial document under the Central Goods and Services Tax Act, for the period between July and September 2017. The High Court, in its judgment dated 05.05.2020, allowed the writ petition and read down the circular to permit rectification of Form GSTR-3B for the mentioned period. Respondent No.1 was granted the right to rectify their Form GSTR-3B, and the appellant was directed to verify and give effect to the rectified form within two weeks.

The context of the case lies in the enactment of the Central Goods and Services Tax Act, 2017, effective from 01.07.2017. Along with this act, Rules 59, 60, and 61 of the Central Goods and Services Tax Rules, 2017, came into force, along with various forms including GSTR-1, GSTR-2, GSTR-2A, GSTR-3, and GSTR-3B. Notably, Notification No.17/2017-Central Tax, dated 27.07.2017, amended Rule 61 by introducing Rule 61(6), altering its previous version. Rule 61(5) was substituted, and Rule 61(6) was inserted, allowing for the electronic filing of Form GSTR-3B and detailing the procedure for its submission and modification.

Further developments occurred with Notification No.18/2017-Central Tax, dated 08.08.2017, which extended the time to file Form GSTR-1 for July and August 2017. Concurrently, Notification No.21/2017-Central Tax, also issued on 08.08.2017, specified that Form GSTR-3B should be filed electronically for the months of July and August 2017 through the common portal by the dates mentioned in the notification.

This summary encapsulates the legal proceedings and legislative actions surrounding the rectification of Form GSTR-3B within the ambit of the Central Goods and Services Tax Act and associated rules and notifications.

Download PDF:

For Reference Visit:

Read Another Case Law:

GST Case Law: