SUNLIGHT BOARDS PRIVATE LIMITED v. STATE TAX OFFICER & ORS

Introduction

This judgment addresses the consequences of a technical error on the GST portal that resulted in an impossible tax rate being reflected in the taxpayer’s return. The Kerala High Court held that where the assessee consistently demonstrates that the mismatch between GSTR-1 and GSTR-3B arose due to a portal-related error and not because of suppression or tax evasion, the assessing authority must examine such contention before finalizing the assessment.

The Court observed that a tax liability of 36% (18% CGST + 18% SGST) was not contemplated under the GST law for the goods involved, making the issue a serious system anomaly requiring rectification by GSTN before completion of assessment.