SC directs CBIC to allow rectification of GSTR 1 after 30th November!

According to GST laws, amendments to GSTR-1 can be made until 30th November of the following financial year or before filing the annual return in GSTR-9, whichever comes first. However, taxpayers often identify errors while filing Form GSTR-9 in December of the next financial year, by which time corrections are no longer possible.

Recently, in the case of CBIC vs. M/s Aberdare Technologies Pvt Ltd., the Hon’ble Supreme Court ruled that GSTR-1 should be made available for revision on the portal at a later date if there is no loss to the revenue.

Let’s explore this in more detail!

Case details

Proceeding name: CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS Vs M/s ABERDARE TECHNOLOGIES PRIVATE LIMITED & ORS.

Ruling date: 21^st March 2025

A ruling by: The Supreme Court of India

Background of this case

1. The petitioner filed GST returns on time but later, in December 2023, noticed some errors that did not cause any loss of revenue to the state. 
2. According to Section 39(9) of the CGST Act, such errors must be corrected by November 30 of the following financial year. 
3. Since the deadline was missed, the petitioner submitted a written request to the authorities for permission to make the corrections, but the authorities did not approve the same.
4. Aggrieved by this, the petitioner filed a petition against the authorities.
5. The petitioner informed the Court that there is a previous judgment in Writ Petition No. 15368 of 2023, decided on December 14, 2023, in the case of Star Engineers (I) Pvt. Ltd. vs. Union of India & Ors. In this case, the Court ruled that if there is no loss of revenue, amendments or corrections to Form GSTR-1 should be allowed even after the November 30 deadline. 
6. The Bombay High Court decided the case in the favour of the taxpayer and instructed the CBIC to permit the petitioner to amend the GSTR-1 return.
7. The CBIC was not satisfied with the ruling of the Bombay High Court. Therefore, it filed the petition in the Supreme Court for the matter.

The decision by the Supreme Court

The Supreme Court dismissed the CBIC and has been asked to review the timelines and rules for correcting genuine mistakes, as such errors are common and even tax authorities make them. The High Court emphasized that a purchaser who has already paid the tax should not suffer due to technical issues. Businesses should have the right to correct errors, and software limitations should not be a reason to deny corrections. As a result, the petitioner has been allowed to amend the GSTR-1 return, ensuring a fair tax process.

Conclusion

The Bombay High Court and the Supreme Court have established a strong precedent for safeguarding taxpayers' rights under the GST framework. Their rulings emphasize the principles of natural justice, substantive compliance, and fair taxation. Authorities are encouraged to avoid excessive technicalities and permit genuine ITC claims when errors are proven to be unintentional and do not result in revenue loss. These rulings reflect a more evolved GST system that prioritizes taxpayer facilitation and justice.

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