GST Update

Desk of CA. Praveen Sharma – 916 Series (CAPS)

Himachal Pradesh High Court in the case of Shivam Electric Corporation

The petitioner approached the High Court seeking permission to manually file GSTR-3B for the quarter ending March 2021 in order to claim missed input tax credit of around ?10.54 lakh.

The ITC was not claimed earlier due to a procedural mistake during FY 2020–21, which came to light later at the time of filing the annual return for that year.

Although the error was rectified in GSTR-9, the mismatch continued in departmental records and was highlighted only after issuance of a DRC-01 notice in November 2024.

The department opposed the request, stating that the mistake was known in 2022 and that the GST law does not allow manual filing of GSTR-3B after the prescribed timelines.

The petitioner argued that manual filing would not cause any revenue loss and would not automatically cancel or override the demand already raised by the department.

The Court agreed with this view and observed that allowing manual filing would not affect the validity of the existing demand, which could still be challenged separately.

Accordingly, the Court directed the authorities to accept the manual GSTR-3B filing, clarifying that it would have no automatic impact on the confirmed demand, and disposed of the petition.

LINK: CA. Praveen Sharma on Linkedin

Regards
CAPS