GST entry error proves costly to company
But High Court has stepped in to save a firm that was deprived of credit of nearly Rs 10 crore, by asking the nodal officer to decide on a correction
The High Court has directed a GST nodal officer to consider the corrections sought by a company which had made a mistake while filing a GST form. This had led to the deprivation of credit to the tune of nearly Rs 10 crore. The company said it was a bonafide error which should be corrected.
Pragati Automation Pvt Ltd approached the HC with a petition seeking direction to the GST authorities to permit it to correct an error in the GST Tran-1 form it had filed. Due to the “bonafide error which has crept in while filing the form,” the company was “deprived of the transitional credit of an amount of Rs 9,74,57,802 in their electronic credit ledger”.
Considering the problem on hand the HC noted, “It is the contention of the petitioner that after the GST regime has been implemented in India, the petitioner filed GST TRAN-I claiming the credit of Rs 9,74,57,802 in Column-5 of Table 5(a) of Form GST TRAN-1 well within the time prescribed by the statute. Revised Form GST Tran-1 was filed by the petitioner on 27.12.2017 after including the details of goods sent to job worker and held in stock on behalf of the principal manufacturer in terms of Section 141 of CGST Act credit pertaining to job work.
However, credit claim was indicated only in Column-5 of Table 5(a) but not in Column-6. The electronic credit ledger reflected the credit of Rs 5,89,346.”
The nodal officer is obligated to consider the complaint and take a decision in the matter.
The company made several complaints to the GST nodal officer but these were not considered, forcing it to file the petition before the High Court. The HC said that the nodal officer is obligated to consider the complaint and take a decision in the matter. Since it was not done, the HC ordered the nodal officer “to consider the complaint/representation made by the petitioner to the writ petition and take a decision in accordance with the law in an expedite manner.”
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Source: Bangalore Mirror Bureau