HC quashes GST Extension Notifications for GSTR-3B filing timelines and Composition Orders for CMP-01 deadlines as arbitrary

The Rajasthan HC quashed Extension Notifications prescribing timelines for GSTR-3B filing and declared Composition Orders setting deadlines for CMP-01 forms as arbitrary. The court directed respondents to address GSTN portal defects by establishing email reporting system through District Information Officers for technical issues. No coercive action including penal interest, late fees, or prosecution would be taken against petitioners' clients reporting problems via email. The composition scheme was extended until September 30, 2017, allowing eligible assessees to apply. The petition was disposed of with these protective directions.

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Issues Involved:
1. Timelines for filing GST returns under Extension Notifications
2. Technical glitches on GSTN portal affecting statutory compliances
3. Composition scheme under GST Act, 2017
4. Requirement of filing HSN details in Form TRAN 1
5. Refund of late payment fees under Waiver Notification
6. Calculation of interest or penalty on non-compliance
7. Editing core registration details and GSTR 3B particulars on GSTN portal
8. Delay in availability of Form TRAN 1 on GSTN portal

Analysis:

Timelines for filing GST returns under Extension Notifications:
The petitioner sought relief declaring the timelines prescribed under the Extension Notifications as arbitrary due to glitches on the GSTN portal. The court directed immediate solutions for non-responsive systems and protected clients from coercive actions until resolution. The composition scheme was extended, and applications accepted retroactively.

Technical glitches on GSTN portal affecting statutory compliances:
The court acknowledged system issues affecting compliance and directed prompt resolution through email notifications to designated officers. Coercive actions were temporarily suspended, and late filings due to system failures were not attributed to the assessee during a specified period.

Composition scheme under GST Act, 2017:
Challenges with availing the composition scheme and opting out were addressed, with directions given to rectify defects on the GSTN portal. The court emphasized the need for adequate time for assesses to exercise their statutory rights under the scheme.

Requirement of filing HSN details in Form TRAN 1:
The petitioner challenged the requirement for filing HSN details for assesses with turnover less than a specified amount as arbitrary. The court directed the respondents to provide a separate form or provision to comply with the notification effectively.

Refund of late payment fees under Waiver Notification:
The court deemed the Waiver Notification discriminatory for not refunding late fees paid before its issuance. Directions were given to refund late fees paid for specific periods, ensuring fairness and compliance with the law.

Calculation of interest or penalty on non-compliance:
Until system glitches were rectified, the court directed that no interest or penalty be levied on assesses for non-compliance with prescribed timelines under relevant Acts. This measure aimed to mitigate undue financial burdens on assesses due to technical issues.

Editing core registration details and GSTR 3B particulars on GSTN portal:
The court ordered remedies for defects on the GSTN portal, enabling assesses to retrospectively edit core registration details and amend GSTR 3B particulars before filing returns. This directive aimed to facilitate accurate and timely submissions.

Delay in availability of Form TRAN 1 on GSTN portal:
The petitioner challenged the delayed availability of Form TRAN 1 on the GSTN portal, citing non-conformity with relevant rules. The court directed the respondents to extend the filing date suitably, ensuring assesses had adequate time to comply with requirements.

This judgment addressed various issues arising from technical challenges on the GSTN portal, providing directions to safeguard assesses' rights, ensure compliance with statutory requirements, and rectify system deficiencies to facilitate smoother operations under the GST regime.

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