Page 37 - GSTL_16th July 2020_Vol. 38_Part 3

2020 ] NEWS DESK J79
Government moves SC over Airtel GST refund
Challenges Delhi High Court order that allowed Sunil Mittal-led firm to claim
tax refund worth ` 923 crore
The Central Government has moved the Supreme Court challenging a
Delhi High Court (HC) order that allowed Bharti Airtel to claim Goods and Ser-
vices Tax refund worth ` 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 re-
turns 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 rele-
vant period, and could have discharged its liability through the tax credit”. It fur-
ther said that as a consequence, the deficiency in reporting the eligible input tax
credit had resulted in excess payment.
Harpreet Singh, Partner at KPMG, said it was no surprise that the Reve-
nue Authorities had challenged the order.
“It would be interesting to see what stand the Apex Court would take as
the HC order had fully appreciated the facts and was well reasoned,” Singh said.
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 Sep-
tember, 2017 circular, which allowed for reconciliation of any mismatch. Howev-
er, 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.
[Source : Business Standard, New Delhi, dated 9-7-2020]

Need to stabilise the GST tech platform
On July 1 this year, Goods and Services Tax (GST) completed three years.
It was on the midnight of July 1, 2017, that GST was unveiled with a lot of fanfare
GST LAW TIMES  16th July 2020  37