GST errors can be fixed after deadline: SC

In a significant judgment that could ease goods and services tax (GST) compliance for businesses, the Supreme Court has dismissed a special leave petition (SLP) by the Central Board of Indirect Taxes and Customs (CBIC), allowing companies to rectify clerical errors in tax filings even after the deadline, provided there is no loss of revenue.

- MONIKA YADAV

The apex court last week upheld the Bombay High Court's judgment in favour of Aberdare Technologies Pvt Ltd, stating that human errors are normal and must not lead to denial of input tax credit (ITC). It ruled that "the right to correct mistakes in the nature of clerical or arithmetical errors flows from the right to do business and should not be denied unless there is a good justification". The Supreme Court further emphasised that denying ITC due to human errors results in unfair double taxation, where businesses end up paying tax twice. It also ruled that "software limitation itself cannot be a good justification, as software are meant to ease compliance and can be configured".