HOW TO CORRECT GST FILING ERRORS WITHOUT PAYING A PENALTY

INTRODUCTION

Goods and Services Tax (GST) compliance is a critical aspect of running a business in India. While it aims to streamline the taxation system, its practical implementation has posed challenges for businesses of all sizes. Multiple monthly filings, complex return structures, and system-driven validations often result in errors, especially for small and medium enterprises (SMEs) with limited accounting support.

Recently, the Supreme Court of India delivered a landmark ruling, allowing companies to correct clerical or arithmetical errors in their GST filings without facing penalties, provided the government does not lose revenue. This development is for thousands of honest taxpayers who have suffered due to minor, unintentional errors in the highly technical GST return process.

In this article, we break down what this ruling means, how businesses can correct errors in GST filing, and the step-by-step GST amendment process. Whether you’re struggling with common GST filing errors and fixes or seeking GST registration help, understanding your rights and responsibilities can save you from penalties and compliance issues.

THE SUPREME COURT RULING

Recently, two landmark judgments have set a precedent by granting relief to taxpayers who made minor clerical errors in their GST filings. These rulings recognized that such mistakes are often unintentional and emphasized that rectification of these errors can be made without any penalties. According to the judgments, corrections related to clerical or arithmetical mistakes, provided they do not result in revenue loss to the government, are permissible and should not be grounds for penal action.

The details of the judgments are outlined below.:

• Brij Systems Ltd & Ors vs. Union of India [TS-921-HC(BOM)-2024-GST]: The Bombay High Court allowed the rectification of the return in GSTR 1, acknowledging the genuine mistake in filing and the absence of any loss of revenue. The court referenced previous judgments, including Star Engineers (I) Pvt Ltd. vs. Union of India, to support its decision. Read the judgement here: 6334_2025_1_17_60381_Order_24-Mar-2025.pdf
• Aberdare Technologies Pvt Ltd Vs. CBEC 2024 Bombay High Court [TS-508-HC(BOM)-2024-GST]: The Bombay High Court allowed the rectification of both GSTR 1 and GSTR 3B, acknowledging the genuine mistake in filing and the absence of any loss of revenue. The court referenced previous judgments, including Star Engineers (I) Pvt Ltd. vs. Union of India, to support its decision. Read the judgement here: CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS v. M/S ABERDARE TECHNOLOGIES PRIVATE LIMITED | Supreme Court Of India | Judgment | Law | CaseMine

This ruling acknowledges the reality that humans make errors and that the purpose of tax law should be to ensure proper revenue collection, not to punish honest mistakes.

HOW TO CORRECT ERRORS IN GST FILING

Understanding how to correct errors in GST filing is the first step towards compliance. The process for correcting mistakes depends on when the error is discovered:

1. Before ARN Generation

If you spot an error before the ARN (Application Reference Number) is generated, the correction process is simple. You can log into the GST portal and edit the application. This applies to both GST registration and return filings.

2. After ARN Generation but Before Approval

If the application has been submitted and the ARN has been generated, but the registration or return hasn’t yet been approved, you’ll receive a notice from the GST officer (usually via Form REG-03). You must respond with corrected information through Form REG-04 within 15 days.

3. After GST Registration is Approved

Once registration is approved, any error correction becomes an “Amendment.” There are two types of fields here:

• Core Fields (e.g., business name, principal address) require approval from the tax officer.
• Non-Core Fields (e.g., email or phone number) can be changed directly on the portal without approval.

If you’re unsure at any stage, TMWala offers dedicated assistance for businesses seeking guidance on correcting GST registration and return errors promptly and correctly.

STEP-BY-STEP GST AMENDMENT

Here’s the step-by-step GST amendment process you should follow after registration:

1. Login to GST Portal: Visit www.gst.gov.in and log in using your credentials.
2. Navigate to Amendment Section: Go to Services > Registration > Amendment of Registration Core Fields or Non-Core Fields, depending on the nature of the change.
3. Make Necessary Edits: Update the required fields. For Core Fields, you will need to upload supporting documents such as PAN, Aadhaar, address proof, or authorization letters.
4. Submit Application: Use a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC) to submit the application.
5. Await Approval: Non-Core Field changes are updated instantly. Core Field changes may take a few days as they require approval from a GST officer.
6. Track Application Status: You can monitor the status of your amendment application on the dashboard.

Understanding this process is essential for anyone who wants to revise a GST return or correct registration details without facing legal or financial consequences.

COMMON GST FILING ERRORS AND FIXES

Errors during GST filing are more common than one might assume, especially for first-time business owners. Below are some common GST filing errors and fixes:

• Incorrect PAN Number: A mistake in your PAN can lead to rejection. This can’t be corrected; you must apply for a new registration.
• Wrong Address or Jurisdiction: Use Form REG-14 to correct this. Approval is needed as this is a Core Field.
• Misspelled Business Name: Also, a Core Field, this requires amendment through the portal.
• Incorrect Email or Mobile Number: This is a Non-Core Field and can be corrected directly.
• Unclear or Incorrect Document Uploads: Always upload legible, self-attested copies. Replace them promptly if requested.

Fixing these early ensures your registration or return isn’t rejected or penalized.

GST ERROR CORRECTION DEADLINE

Timing is critical when it comes to GST compliance. The GST error correction deadline varies based on the type of correction:

• For return filing errors (e.g., GSTR-1 or GSTR-3B), corrections must be made by November 30 of the following financial year or before the filing of the annual return, whichever is earlier.
• For registration-related corrections (e.g., via REG-04 or REG-14), corrections should be made within 15 days of receiving a notice or discovering the error.

Missing these deadlines can result in penalties or the need to start the application from scratch.

HOW TO REVISE GST RETURN

If you realize an error after submitting your GST return, here’s how to revise the GST return effectively:

1. Identify the Return Type: Know whether the error is in GSTR-1, GSTR-3B, or another form.
2. Locate the Error Month: Corrections must be made in the return of the month when the error occurred or the next available filing period.
3. Use Amendment Sections: GSTR-1 and GSTR-3B have specific fields for “Amended Invoices” or “Corrected Data.”
4. Avoid Duplication: Ensure you’re not creating double entries when correcting.
5. Keep Records: Maintain audit trails to prove that corrections are genuine.

Revising returns responsibly is key to maintaining compliance and avoiding scrutiny.

GST REGISTRATION HELP FOR NEW BUSINESSES

If you’re a new business, the GST registration process can be overwhelming. Mistakes during registration can delay operations, bank account openings, and invoicing. Here’s how to seek GST registration help:

• Consult a GST practitioner or tax advisor.
• Use platforms like TMWala, which offer expert assistance in error-free registration.
• Double-check documents and data before submission.
• Always respond promptly to any queries raised by GST authorities.

With proper support, you can avoid mistakes that cause rejections or reapplications.

CONCLUSION

GST compliance may be challenging, but recent legal developments are making it more manageable for businesses. By knowing how to correct errors in GST filing, understanding the step-by-step GST amendment procedure, and getting GST registration help when needed, businesses can avoid unnecessary penalties.

Always act within the GST error correction deadline, and if you’re unsure about how to revise GST return, seek professional advice. As the GST system evolves, the emphasis is clearly shifting toward enabling and supporting compliant businesses not punishing them for minor mistakes.

A culture of transparency, supported by clear rules and a responsive system, will help both the government and taxpayers. With the right knowledge and timely action, GST can become a manageable and fair part of doing business in India.