News Details- (Get Professional Updates on Whatsapp, Msg on
8285393786) More
News
Govt moves SC against Bharti Airtel in Rs 923 Cr GST refund case
PrintThe central government has moved the Supreme Court challenging a Delhi High Court (HC) order that allowed Bharti Airtel to claim goods and services tax refund worth Rs 923 crore.
The case pertains to under-reporting of input tax credit in the GST summary return form, GSTR-3B, between July and September 2017 because of the absence of purchase-related return form, GSTR-2A, at that time. In May, the Delhi HC had allowed the telecom major to seek a refund by rectifying GST returns filed between July and September 2017.
The government has held that the Sunil Mittal-led company under-reported input tax credit, while the company argued that it paid excess tax on inputs, as the GSTR-2A form was not operational at the time. The form allows for validation before uploading.
The HC held that “indisputably, if the statutorily prescribed returns, GSTR-2 and GSTR-3 had been operationalised by the government, the petitioner would have known the correct input tax credit amount available to it in the relevant period, and could have discharged its liability through the tax credit”. It further said that as a consequence, the deficiency in reporting the eligible input tax credit had resulted in excess payment.
The central GST Act had provided for forms GSTR-1 (sales return), GSTR-2 (purchase return), and GSTR-3, which match sales and purchase details. With Forms 1 and 2 not operationalised, the government introduced Form-2A in October 2018 to avail of input tax credit and GSTR-3B to file summary returns.
In the absence of the GSTR-2A form at the time, Bharti Airtel contended that input tax credit details were submitted based on estimates and it noticed the under-reporting in October 2018. That is when it sought to revise its returns.
The telco tried to correct the anomaly based on the government’s September 2017 circular, which allowed for reconciliation of any mismatch. However, in December 2017, the government issued a fresh circular barring entities from making rectifications.
Airtel had contended that the Centre instead introduced GSTR-3B form, which required data to be filled in manually and does not permit data validation before it is uploaded. “The inability of the respondents to run their IT system according to the structure provided under the CGST Act cannot prejudice the rights of a registered person,” Airtel had argued. #casansaar (Source - Business Standard)
The case pertains to under-reporting of input tax credit in the GST summary return form, GSTR-3B, between July and September 2017 because of the absence of purchase-related return form, GSTR-2A, at that time. In May, the Delhi HC had allowed the telecom major to seek a refund by rectifying GST returns filed between July and September 2017.
The government has held that the Sunil Mittal-led company under-reported input tax credit, while the company argued that it paid excess tax on inputs, as the GSTR-2A form was not operational at the time. The form allows for validation before uploading.
The HC held that “indisputably, if the statutorily prescribed returns, GSTR-2 and GSTR-3 had been operationalised by the government, the petitioner would have known the correct input tax credit amount available to it in the relevant period, and could have discharged its liability through the tax credit”. It further said that as a consequence, the deficiency in reporting the eligible input tax credit had resulted in excess payment.
The central GST Act had provided for forms GSTR-1 (sales return), GSTR-2 (purchase return), and GSTR-3, which match sales and purchase details. With Forms 1 and 2 not operationalised, the government introduced Form-2A in October 2018 to avail of input tax credit and GSTR-3B to file summary returns.
In the absence of the GSTR-2A form at the time, Bharti Airtel contended that input tax credit details were submitted based on estimates and it noticed the under-reporting in October 2018. That is when it sought to revise its returns.
The telco tried to correct the anomaly based on the government’s September 2017 circular, which allowed for reconciliation of any mismatch. However, in December 2017, the government issued a fresh circular barring entities from making rectifications.
Airtel had contended that the Centre instead introduced GSTR-3B form, which required data to be filled in manually and does not permit data validation before it is uploaded. “The inability of the respondents to run their IT system according to the structure provided under the CGST Act cannot prejudice the rights of a registered person,” Airtel had argued. #casansaar (Source - Business Standard)
Category : GST | Comments : 0 | Hits : 419
Get Free Daily Updates Via e-Mail on Income Tax, Service tax, Excise and Corporate law
Search News
News By Categories More Categories
- Income Tax Dept serves notices to salaried individuals for documentary proof to claim exemptions
- Bank Branch Audit 2021 - Update on allotment of Branches
- Bank Branch Audit 2020 Updates
- Bank Branch Audit 2021 Updates
- Bank Branch Audit 2020 - Update on Allotment of Branches
- Police Atrocities towards CA in Faridabad - Its Time to be Unite
- Bank Branch Statutory Audit Updates 2019
- Bank Branch Statutory Audit Updates
- Bank Branch Audit 2022 Updates
- Bank Branch Statutory Audit Updates
- NFRA Imposes Monetary penalty of Rs 1 Crore on M/s Dhiraj & Dheeraj
- ICAI notifies earlier announced CA exam dates despite pending legal challenge before SC
- NFRA debars Auditors, imposes Rs 50 lakh penalties for lapses in Brightcom, CMIL cases
- GST Important Update - Enhancement in the GST Portal
- NFRA Slaps Rs 5 lakh Penalty on Audit Firm for lapses in Vikas WSP Audit Case
- CBDT extends due date for filing Form 10A/10AB upto 30th June, 2024
- RBI comes out with FEMA regulations for direct listing on international exchange
- RBI directs payment firms to track high-value, fishy transactions during elections
- NCLT orders insolvency proceedings against Subhash Chandra
- Income Tax dept starts drive to dispose of appeals, 0.54 million at last count
- Payment of MCA fees –electronic mode-regarding
- Budget '11-12' Parliament Completes Approval Exercise
- Satyam restrained from operating its accounts
- ICICI a foreign firm, subject to FDI norms: Govt
- Maha expects Rs 15 crore entertainment tax revenue from IPL
- CAG blames PMO for not acting against Kalmadi
- No service tax on visa facilitators: CBEC
- Provision of 15-minutes reading and planning time allowance to the candidates of Chartered Accountants Examinations
- Companies Bill to be taken up in Monsoon Session
- File Service Tax Return in time as Maximum Penalty increased 10 times to Rs. 20000
Comments