{"id":8044,"date":"2026-02-18T19:52:18","date_gmt":"2026-02-18T14:22:18","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=8044"},"modified":"2026-02-18T19:52:18","modified_gmt":"2026-02-18T14:22:18","slug":"return-mismatch-without-fraud-requires-chance-to-amend-returns-gstat","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/return-mismatch-without-fraud-requires-chance-to-amend-returns-gstat","title":{"rendered":"Return Mismatch Without Fraud Requires Chance to Amend Returns | GSTAT"},"content":{"rendered":"<pre><strong>Case Details: <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/gst\/101010000000416417\/return-mismatch-without-fraud-warrants-opportunity-to-amend-returns-matter-remanded-gstat\">Sterling &amp; Wilson Pvt. Ltd. vs. Commissioner, Odisha, Commissionerate of CT GST (2026) 39 Centax 246 (Tri.-GST-Delhi)<\/a><\/strong><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>Justice Dr Sanjaya Kumar Mishra<\/strong>, President<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The appellant reported a higher output tax liability in GSTR-1 than in GSTR-3B, resulting in a mismatch that led to a demand for tax, interest, and penalty. Upon examination of GSTR-1, GSTR-3B, GSTR-9 and GSTR-9C, the First Appellate Authority confirmed the tax and interest and reduced the penalty, holding that there was no establishment of fraud or suppression of facts, as the transactions were disclosed through debit and credit notes supported by invoices duly accounted for in the books of account, though not correctly reflected in the periodical returns. The proceedings were accordingly converted from Section 74 to Section 73 of the CGST Act\/Odisha GST Act, and a penalty was imposed under Section 73(9). It was further held that the appellant could not prove that the input tax credit (ITC) passed to recipients had not been utilised. The appellant challenged the order, contending that the demand arose merely due to a return mismatch without proper reconciliation and that the levy of interest and penalty was unsustainable. The matter was accordingly placed before the Goods and Services Tax Appellate Tribunal (GSTAT).<\/p>\n<h2><em>GSTAT Held<\/em><\/h2>\n<p>The GSTAT held that the First Appellate Authority had recorded absence of fraud or suppression and had accepted that the transactions were supported by debit and credit notes duly accounted for in the books of account. It noted that the lapse found was a failure to reflect such debit and credit notes in the periodical returns, and to establish whether the ITC passed to recipients had been utilised. The Tribunal held that this aspect required reconsideration by the Proper Officer. The matter was therefore remanded to the original adjudicating authority for re-determination of tax under Section 74 read with Section 73 of the CGST Act\/Odisha GST Act, with direction to provide the appellant an opportunity to amend the returns by condoning the delay.<\/p>\n<h2><em>List of Cases Cited<\/em><\/h2>\n<ul>\n<li>(1997) 6 SCC 564 \u2014 Followed [Para 22]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=1997%20(93)%20E.L.T.%20641%20(SC)&amp;itemType=AP\">Bombay<\/a> \u2014 1997 taxmann.com 696 (SC) = 1997 (93) E.L.T. 641 (SC)) \u2014 , followed [Para 22]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2018%20(361)%20E.L.T.%20577%20(S.C.)&amp;itemType=AP\">Commissioner of Customs (Import), Mumbai v. Dilip Kumar &amp; Company<\/a> \u2014 2018 (361) E.L.T. 577 (S.C.) \u2014 Referred [Para 14]<\/li>\n<li>Hamida v. Md. Khalil \u2014 (2001) 4 SUPREME 21 \u2014 Referred [Para 14]<\/li>\n<li>Sun Export Corporation v. Collector of Customs \u2014 Followed<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=1997%20(93)%20E.L.T.%20641%20(S.C.)&amp;itemType=AP\">Sun Export Corporation v. Collector of Customs<\/a> \u2014 1997 (93) E.L.T. 641 (S.C.) \u2014 Referred [Para 22]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=(2024)%2019%20Centax%20434%20(Bom.)&amp;itemType=AP\">V.S. Products v. Additional Commissioner (Appeals)<\/a> \u2014 (2024) 19 Centax 434 (Bom.) 19-Centax 434 (BOM) \u2014 Referred [Para 1]<\/li>\n<\/ul>\n<h2><em>List of Departmental Clarification Cited<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=Circular%20No.%20254%2F11%2F2025-GST&amp;itemType=AP\">Circular No. 254\/11\/2025-GST<\/a> dated 27.10.2025<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Sterling &amp; Wilson Pvt. Ltd. vs. Commissioner, Odisha, Commissionerate of&hellip;<\/p>\n","protected":false},"author":19,"featured_media":8053,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,60,189],"tags":[],"class_list":["post-8044","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst","category-news","category-gst-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Return Mismatch Without Fraud Requires Chance to Amend Returns | GSTAT<\/title>\n<meta name=\"description\" content=\"GSTAT remands case holding return mismatch without fraud needs opportunity to amend GST returns and reconsider tax, interest and penalty liability.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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