Recovery can’t be made directly due to difference in GSTR-1 & GSTR-3B without following the procedure under Rule 88C of the CGST Rules, 2017
➡️ Petitioner’s Challenge: The petitioner filed a writ petition to challenge a recovery notice issued by the revenue authority. They argued that the discrepancy between the sales declared in outward supplies (Form GSTR-1) and the returns filed was primarily due to sales returns, which had been explained.
➡️ Explanation Provided: The petitioner had previously explained the difference between the amounts in Form GSTR-1 and Form GSTR-3B in response to a previous notice.
➡️ Respondent’s Contentions: The respondents claimed that the petitioner had not clearly stated that a notice in Form GST DRC-01B could be issued through the common portal under Rule 88C of the CGST Rules, 2017, and accused them of suppression.
➡️ Court’s Decision: The court held that recovery couldn’t be made solely based on differences between Form GSTR-1 and Form GSTR-3B without following the procedure prescribed under Rule 88C of the CGST Rules, 2017. Genuine reasons for discrepancies could exist and could be rectified in subsequent filings of GSTR-1 and GSTR-3B.
✔️ Caterpillar India (P.) Ltd. v. Assistant Commissioner [W.P. NO.28092 OF 2023 and W.M.P. NOS. 27606 AND 27607 OF 2023 dated SEPTEMBER 25, 2023]
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