Case laws|GST: Where assessee had routinely deposited GST amount into ECL within due date, it would not be liable to pay interest even if assessee could not file monthly return in Form GSTR 3B within due date but filed belatedly
[2024] 158 taxmann.com 593 (Madras)
HIGH COURT OF MADRAS
Eicher Motors Ltd.
v.
Superintendent of GST and Central Excise, Range-II
KRISHNAN RAMASAMY, J.
W.P. NOS.16866 & 22013 OF 2023
W.M.P. NO. 32200 OF 2023
JANUARY 23, 2024
Interest – Delayed payment of tax – GST deposit in ECL – Period July 2017 to December 2017 – On date of introduction of GST, assessee had an accumulated balance of CENVAT credit – Owing to want of system readiness and technical glitches in GST Common Portal, Department had extended due dates for filing Form GST TRAN-1 and accordingly, assessee had filed their Form GST TRAN 1 belatedly – Since entire amount did not reflect in Electronic Credit Ledger, assessee could not file monthly return – Though, assessee was disabled from filing returns, assessee had paid tax dues in full within due dates discharging GST liability for period from July, 2017 to December, 2017 by depositing tax amounts in Electronic Cash Ledger – Of late, assessee was permitted to file returns – After 6 years, payment of interest was demanded for alleged belated payment of GST on ground that deposit of tax in Electronic Cash Ledger would not amount to payment of tax and would tantamount to failure to remit GST in time, for which interest liability would be attracted –
HELD : Assessee was not liable to pay interest on GST amount which was routinely deposited into ECL within due date for reason that tax amount had already been credited to Government within prescribed time limit – It was to be directed that credit to account of Government would always occur not later than last date for filing monthly returns in terms of provisions of section 39(7) – Further, once amount is paid by generating GST PMT-06, said amount would be initially credited to account of Government immediately upon deposit, at which point, tax liability of a registered person would be discharged to extent of deposit made to Government while thereafter, for purpose of accounting only, it would be deemed to be credited to ECL as stated in Explanation (a) to section 49(11) – Furthermore, as long as GST, which was collected by a registered person, is credited to account of Government not later than last date for filing monthly returns, to that extent, tax liability of such registered person would be discharged from date when amount was credited to account of Government and if there would be any default in payment of GST, even subsequent to due date for filing monthly returns i.e., on or before 20th of every succeeding month, for said delayed period alone a registered person would be liable to pay interest in terms of section 50(1) – [Section 50, read with sections 39 and 49 of the Central Goods and Services Tax Act, 2017/Tamil Nadu Goods and Services Tax Act, 2017] [In favour of assessee] [Para 72]
Where assessee had routinely deposited GST amount into Electronic Cash Ledger within due date, it would not be liable to pay interest even if assessee could not file monthly return in Form GSTR 3B within due date but filed belatedly. This implementation helps in reducing the extra burden could to be imposed on the assessee – JSPCO
