JSA Newsletter – Indirect Tax November 2021 Edition

Recent Rulings by Courts and Authorities

Supreme Court Ruling

Supreme Court overturns Delhi High Court judgment allowing rectification of Form GSTR-3B relating to the period in which the error occurred

In the case of Union of India vs. Bharti Airtel , the company claimed ITC for the period July 2017 to September 2017 in Form GSTR-3B on estimated basis, since details of actual ITC were not available, and the output GST liability was accordingly discharged in cash. The exact ITC available for the relevant period was discovered later in the month of October 2018, when the Government operationalized Form GSTR-2A for the past periods. Accordingly, the company realized that while ITC was available (as appearing in Form GSTR-2A), the same could not be utilized, and thus the output GST liability was paid in cash.

The company considered rectifying its returns for the period July 2017 to September 2017, however, a Circular issued by CBIC in December 2017 (“the Circular”) on the subject stated that errors in GSTR-3B of any period can only be corrected in GSTR 3B of the subsequent month in which the error were noticed, and not in GSTR 3B for the month to which such error relates. Another circular was issued earlier in September 2017, which allowed rectification of errors in a GST Return in the same month in which the error occurred. However, this circular was kept in abeyance.

For details, please refer to the below document.

Your web browser doesn’t have a PDF plugin.Instead you can click here todownload the Newsletter. 

This Newsletter has been prepared by JSA’s Indirect Tax Team.

For further details, please contact [email protected]