Supreme Court Seeks Finance Ministry’s Response on Revised GST Returns
Supreme Court Issues Notice in Writ Petition Seeking Option for Revised GST Returns
The Supreme Court has recently issued a notice in a Writ Petition seeking the availability of an option for revised returns on the GSTIN Portal. The petition was filed by Pradeep Kanthed, who argued that the unavailability of such an option is creating a trap for GST-registered persons and GST-registered dealers.
Kanthed pointed out that GST returns are filed under sections 39(1), 39(2), 39(3), and 39(5) of the GST Act, but there is no provision for revised returns in the Act, Rules, or the GSTN Portal. This is in stark contrast to other revenue laws, such as the Income Tax Act, VAT Act, and Customs and Duties Act, which all typically include provisions for revised returns.
Kanthed argued that the absence of a provision for revised GST returns is illiberal and illogical, and it deprives GST-registered persons and GST-registered dealers of their fundamental rights. He urged the Supreme Court to direct the respondents to provide the option for revised returns.
The Supreme Court has issued a notice to the respondents, including the Ministry of Finance, seeking their response to the petition. The next hearing in the case is scheduled for November 15, 2023.
Implications of the Supreme Court’s Notice
The Supreme Court’s notice in this case has significant implications for GST-registered persons and GST-registered dealers. If the Supreme Court rules in favor of the petitioner, it could lead to the introduction of a provision for revised GST returns. This would be a welcome relief for businesses, as it would allow them to correct any human errors in their return filings.
The introduction of a provision for revised GST returns would also help to reduce disputes between the GST Department and GST-registered persons. Currently, if a business makes an error in its GST return, it may have to pay penalties or interest. However, if a provision for revised GST returns were introduced, businesses would be able to correct their errors without facing any penalties or interest.