Gujarat HC Fines GST Dept ₹1 Lakh for Ignoring Rectified Mismatch, Flags Non-Application of Mind

Gujarat HC fines GST department ₹1 lakh for ignoring rectified mismatches, flagging non-application of mind in tax scrutiny. The Gujarat High Court imposed a penalty of ₹1 lakh on the Goods and Services Tax (GST) department for failing to properly consider the rectified mismatches in a taxpayer's GSTR-1 and GSTR-3B filings. The court noted that the department acted mechanically, ignoring the assessee's submissions and subsequent corrections that were verifiable through later returns and audit trails. This fine underscores the judiciary's disapproval of arbitrary tax scrutiny and demands that tax authorities apply their mind and consider all relevant information provided by taxpayers.