Kerala HC Permits GSTR 3B Rectification

GSTR 3B Rectification allowed by Kerala HC when ITC in GSTR 3B return accounted as IGST credit instead of CGST and SGST credit erroneously.

The Hon’ble Kerala High Court approved the writ petition filed by M/s. Chukkath Krishnan Praveen v. State of Kerala (WP(C) No. 41219 OF 2023 dated December 8, 2023).

The court ordered that the rectification in return must be permitted in case where the accounting of Input Tax Credit (“ITC”) in GSTR-3B erroneously designates it as Integrated Goods and Services Tax (“IGST”) credit instead of correctly reflecting it as Central Goods and Services Tax (“CGST”) and State Goods and Services Tax (“SGST”) credits.

Petitioner’s Request for Rectification and Relief in GSTR-3B Error

The Petitioner, M/s. Chukkath Krishnan Praveen, (a registered dealer under the KVAT Act and presently under the CGST/SGST Act) committed a mistake when filing GSTR-3B returns, leading to the issuance of the Assessment Order dated August 21, 2023 (“the Impugned Order”). Thereafter, the “Petitioner” submitted a Representation dated October 21, 2023, to the Respondent Authorities, seeking rectification of the mistake in the filed returns.

Subsequently, the Petitioner initiated a writ petition under Article 226 of the Indian Constitution, urging the Revenue Department to allow rectification in Form GSTR-3B, specifically by accounting for the Input Tax Credit (ITC) as Integrated Goods and Services Tax (IGST) instead of Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) ITC.

Additionally, the Petitioner requested a refund of IGST ITC and proposed adjusting the IGST credit towards SGST and CGST liability. The Petitioner also sought the acknowledgment of the Representation as a Rectification Application.

Kerala High Court Directive: Treatment of Representation as Rectification Application and Order Issuance with Due Hearing within Two Months

In the case of WP(C) 41219 of 2023, the Hon’ble Kerala High Court considered the writ petition and directed that the petitioner’s representation be treated as an application for relief. The court ordered the injunction the law required, further allowing the petitioner to be given a fair hearing within two months.

A Guiding Decision for Taxpayers and Businesses

The directive from the Kerala High Court in the Chukkath Krishnan Praveen case emphasizes the importance of GSTR 3B Rectification. This decision guides taxpayers seeking rectification and underscores the crucial role of due process. Such statements and advisories encourage taxpayers and businesses to stay alert of such legal proceedings and help maneuver tax compliance successfully.

How Can IRIS GST Help Prevent Misreporting in GSTR 3B: Ensuring Accuracy and Compliance

Ensuring accurate reporting in the Goods and Services Tax (GST) system is crucial for businesses to maintain compliance and avoid penalties. IRIS GST offers robust features that play a pivotal role in preventing misreporting in GSTR 3B filings, mitigating errors, and enhancing overall accuracy.

Automated Liability Computation: IRIS GST provides a unique feature that automatically computes tax liabilities in GSTR 3B based on GSTR 1 and ITC values based on reconciliation results. This significantly reduces the chances of manual errors, ensuring precise calculations and reporting.
Invoice-Level ITC Tracking: IRIS GST enables businesses to track Input Tax Credit (ITC) at the invoice level, accurately categorizing it under the respective heads of IGST, CGST, or SGST. This meticulous tracking mechanism minimizes the likelihood of misreporting ITC details in GSTR 3B. With clear and correct allocation, businesses can confidently report their ITC figures, thereby enhancing compliance.
Comprehensive MIS Reports: IRIS GST offers a range of MIS reports based on GSTR 1, GSTR 2A/2B, and GSTR 3B data. These reports empower users to conduct detailed analyses, ensuring the accuracy of ITC details provided in their filings.

Reasons To Choose IRIS GST Software

Reduces GST Return Preparation Time with bulk import of sales data, advanced reconciliation, 2A download, and significantly reduce return filing time.
Enables Seamless & Efficient GST Reporting with PAN level view, single login for multiple GSTNs, cloud-based platform and multi-user access.
Provides Maximum ITC Claim with features like matching invoices beyond financial years, invoice numbers, and other rule-based GST reconciliation and up-to-date algorithms ensuring maximum 2B-2P data matching.
Elevates Vendor Compliance by checking vendor GSTNs, matching GSTR 2A, bulk mailing missing voices, and sending reminders.

If you receive a notice, it is important to remember that you are not alone. There are a number of resources available to help you, including professional advice from IRIS GST Experts.

If you want to simplify your GST litigation process, and assessments, and be better prepared for departmental audits and Audit Notices, choose IRIS LMS today!

How Can IRIS LMS Help You?

IRIS LMS is a Litigation Management Solution (LMS) is a cloud-based litigation management software with Artificial Intelligence, a proactive alert mechanism, extensive reporting and an analytics dashboard for enterprises.

IRIS LMS is here to assist you in facing GST departmental audits and efficiently manage Litigation under GST. Further, Integration through API with GSTN Portal is under request with GSTN to enable better tracking.

What Can You Do with IRIS LMS?

Track: Status of Litigations on a real-time basis at GSTIN Level
Store: Complete trail of Litigation from 1st Letter to Replies, Hearing Proceedings to Final Order
Retrieve: Data through friendly UI with custom categorizations
Archive: Gst Returns Data and Various Reconciliations to handle Departmental Audit in the future
Alerts: For various Due Dates for Pending Replies, Appeals, Personal Hearings, Written Submissions