Amendment in GSTR-1 not to be allowed after the prescribed period.

Case Details:

Issue – In the above case, the petitioner seeks to allow amendments in the GSTR-1 form filed for the period January, 2018 to August, 2018 so as to correctly reflect the input tax credit as well as the output tax liability of the petitioner since it had mistakenly shown supplies to another dealer.

Held – It was held that Supreme Court was of the view that the law provides for rectification of errors and omissions in the specified manner. Beyond the statutorily prescribed period, an assessee cannot be permitted to carry out rectification which would inevitably affect obligations and liabilities of other stakeholders because of the cascading effect in the electronic records. Supreme Court considered the mechanism provided by Section 39(9) of the CGST Act and thereafter took the view that allowing the assessee to carry out rectification of errors and omissions beyond the statutorily prescribed period would lead to complete uncertainty and collapse of the tax administration. While delivering the above judgment, Supreme Court took note of the fact that GSTR-2A form for rectification of omissions or incorrect particulars became operational from September, 2018 and therefore the petition was dismissed.