Challenge to GST Circular & Rule: Petitioner contests tax form changes; Respondent to address concerns

The petitioner, a firm of Chartered Accountants, challenged Circular No.07/07/2017-GST and Rule 61(5) of the CGST Rules, 2017, arguing they were violative of the Central Goods & Services Tax Act, 2017. The respondent clarified the requirement to file Form GSTR-3B instead of GSTR-3 until 31st March, 2019. The petitioner contended that this contravened Section 39(7) and that Rule 61(5) constituted excessive delegation. The respondents agreed to file an affidavit addressing these concerns. The case was adjourned for further proceedings on 12th February, 2019.

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Issues:
Challenge to the validity of Circular No.07/07/2017-GST and Rule 61(5) of the Central Goods and Services Tax Rules, 2017.

Analysis:
The petitioner, a firm of Chartered Accountants, filed a writ petition challenging the Circular No.07/07/2017-GST and Rule 61(5) of the CGST Rules, 2017. The focus of the challenge was on the Circular being violative of Section 39 of the Central Goods & Services Tax Act, 2017, and Rule 61(5) of the Rules. The respondent's counsel clarified that Form GSTR-3B, not GSTR-3, is to be filed when the Commissioner specifies it under Rule 61(5). Notifications were issued requiring filing in Form GSTR-3B until 31st March, 2019, relieving the need for GSTR-3. However, the petitioner argued that the requirement to compute and deposit tax before the due date for filing the return, as per Notification No.23 of 2017-Central Tax, was contrary to Section 39(7) which mandates paying tax as per the return by the last filing date. The petitioner also contended that Rule 61(5) allowing the Commissioner to specify the manner of filing GSTR-3B was an excessive delegation beyond the legislative mandate of Section 39 of the Act.

The respondents agreed to file an affidavit addressing the contentions raised by the petitioner within four weeks, and any rejoinder was to be filed within four weeks thereafter. The case was scheduled for re-listing on 12th February, 2019, with the order being issued dasti under the signature of the Court Master.

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