Circular Regarding Mismatch Of ITC Is Applicable For 2019-20 In Case Of Identical Errors: Karnataka High Court

The Karnataka High Court has held that the circular regarding the mismatch of input tax credit (ITC) is applicable for 2019–20 in the case of identical errors.

"Though the Circular refers only to the years 2017–18 and 2018–19, since there are identical errors committed by the petitioner not only in respect of the assessment years 2017–18 and 2018–19 but also in relation to the assessment year 2019–20 also, I am of the view that by adopting a justice-oriented approach, the petitioner would be entitled to the benefit of the Circular for the year 2019–20 also," the single bench of Justice S.R. Kumar said.

Circular No. 183/15/2022 issued a clarification to deal with differences in the input tax credit (ITC) available in Form GSTR-3B as compared to Form GSTR-2A for FY 2017–18 and FY 2018–19. The circular addresses the correction of both genuine and unintentional errors made by individuals when filing forms and submitting returns.

Due to an accidental incorrect mention of the recipient's GSTIN, there was an ITC mismatch. The error pertained to 2019–20. The error-rectification was allowed in accordance with Circular 183 of 2022 with regard to the specific years 2017–18 and 2018–19.

The petitioner claimed before the High Court that the same mistakes had also been made in relation to 2019–20. Therefore, rectification for mistakes made in 2019–20 should be permitted in accordance with Circular 183 of 2022.

The petitioner submitted that the supplies were made by the petitioner to ABB Global Industries and Services Private Limited, but the GSTIN mentioned in the invoices has been incorrectly shown as that of ABB India Limited, which is a completely different, independent juristic and legal entity.

The court held that the error committed by the petitioner in showing the wrong GSTIN number in the invoices was carried forward in the relevant forms as that of ABB India Limited instead of ABB Global Industries and Services Private Limited. It is clearly a bona fide error that has occurred due to bona fide reasons, unavoidable circumstances, or sufficient cause. The circular would be directly and squarely applicable.

The court directed the department to take the necessary steps in relation to the petitioner for the assessment years 2017–2018, 2018–19, and 2019–20 in terms of Circular No. 183/15/2022–GST dated December 27, 2022.

Case Title: M/s Wipro India Ltd. Versus Assistant Commissioner Of Central Tax

Citation: Writ Petition No.16175 Of 2022

Date: 06.01.2023

Counsel For Petitioner: G. Shivadass

Counsel For Respondent: Jeevan J. Neeralgi

Citation: 2023 LiveLaw (Kar) 13

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