One can claim ITC despite the supplier’s mistake in GST return filing: Supreme Court
In landmark judgment of *U0I vs Brij Systems Ltd. [SLP (C) Diary No. 6334/2025], Hon’ble Supreme Court held that businesses have fundamental right to rectify clerical/arithmetical errors in GST filings. It has held that, as a buyer, you can claim ITC despite the supplier’s mistake in GST return filing
It was held that bonafide mistakes of sellers shouldn’t lead to denial of ITC for buyers, especially when the tax has already been paid to government.
The Hon’ble Court’s held and affirm the observations: Supreme Court recognised that human errors in tax filings are inevitable, especially in online systems. Minor errors in tax compliance due to software glitches or portal lock-ins should not penalise taxpayers.
Rectification of such errors is integral part of business operations and shouldn’t be denied due to procedural constraints.
Court upheld Bombay High Court’s ruling in Aberdare Technologies Pvt. Ltd. vs CBIC & Ors. [W.P No. 7912 of 2024] and directed Central Board of Indirect Taxes and Customs (CBIC) to re-examine timelines for rectifications under Sections 37(3) and 39(9) of CGST Act, 2017.
The copy of the order is as under:
