HC instructs Dept. to adhere to the Circular’s instructions in order to grant ITC for genuine errors in returns for FY 19-20 as well.

Assistant Commissioner of Central Taxes v. Wipro Ltd. – [2023]

By submitting GSTR-1, the petitioner’s mistake of reporting the incorrect GSTIN number on the invoices was carried through. It filed a case with the High Court asking for permission to correct Form GSTR-1 with regard to invoices sent to recipients that incorrectly recorded GSTINs so that the real receiver of the supply may claim ITC.

The Honorable High Court stated that the error made in the current case by citing the GSTIN of another recipient group business was legitimate and happened as a result of adequate reason and unavoidable circumstances. The Court mentioned that the CBIC Circular No. 183/15/2022-GST allows for the correction of legitimate and unintentional errors made when submitting returns.

Although the circular is relevant to the financial years 2017–18 and 2018–19, it is also applicable to the financial year 2019–20 if the error made is same. As a result, the Court instructed the department to execute the circular’s instructions and provide ITC subject to verification.