To ERR Is Human, To Forgive Divine

Despite automation in GST, errors in tax filing have been a norm for business enterprises. They arise from voluminous data, manual interventions, technical intricacies and frequent amendments. The errors are noticed during internal reviews, statutory audits, annual filings or eventually through departmental actions.

The Goods and Services Tax Network (GSTN) system is founded on a complex fiscal architecture involving multiple stake holders whose compliance is unified on a single platform and settlement system. Errors may have an impact on the inter-government settlement of revenue. Taking cognizance of this, the GST law has not permitted rectification of previously filed returns as it would lead to frequent disturbance in such settlements.

Though many errors were addressed at early stages, some disputed cases reached higher legal fora. The judiciary played a pivotal role in clarifying the statutory framework governing such errors, while balancing the need for tax certainty with fairness to taxpayers. In this article, we highlight the array of errors committed in the prominent forms, with legal resolutions provided by the Courts. Specific focus would be made on the errors committed in Forms GSTR-1/3B in the later part of the article.

TRANSITION RETURNS – SUPREME COURT’S INTERVENTION