A two-judge bench of the Delhi High Court, while considering a petition filed by Sales Tax Bar Association and anr, directed the Central Government to file Status Report on mismatch b/w GSTR-1 and GSTR-3B.
In the instant case, the petitioner approached the Court contending that as per the status report of the Goods and Services Tax Network (GSTN), the grievance mechanism set up by the Government is ineffective. According to them, the reply furnished should be effective and must disclose the method and manner in which the issue has been resolved. Some specific instances with reference to typical reply have been highlighted.
They further contended that the GSTN does not permit rectification of a return already filed whereas the Central and State Acts permits the same. Nevertheless, authorities are issuing notices to the assessees whenever rectification is made, treating rectification as a discrepancy between GSTR1 and GSTR3B. A large number of assessees are facing this problem, they argued.
After hearing the matter, the bench comprising Justice Sanjiv Khanna and Justice Chander Sekhar directed the Central Government to file response to the said assertions and allegations, in the form of the status report.
“Prima facie we find merit in the submission that replies under the grievance mechanism should specifically deal with the issue raised and indicates the manner in which the same has been resolved and addressed,” the bench said.
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