Press release on GST filing date ruled illegal under CGST/GGST Act

The court held that the press release clarifying the last date for availing input tax credit (ITC) as the filing date for Form GSTR-3B was illegal. It was deemed contrary to the statutory provisions of the CGST Act/GGST Act and associated rules. The writ-application was disposed of in favor of the applicant.

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Issues Involved:
1. Legality and validity of the press release dated 18.10.2018.
2. Interpretation of Section 16(4) and Section 39 of the CGST Act/GGST Act.
3. Applicability of Form GSTR-3B as a return under Section 39 of the CGST Act/GGST Act.
4. Impact of Rule 61 of the CGST Rules/GGST Rules on the filing of returns.

Issue-wise Detailed Analysis:

1. Legality and Validity of the Press Release Dated 18.10.2018:
The writ-applicant challenged the press release dated 18.10.2018, specifically para 3, which clarified that the last date for availing input tax credit (ITC) relating to invoices issued from July 2017 to March 2018 is the last date for filing the return in Form GSTR-3B. The applicant argued that this clarification is contrary to Section 16(4) of the CGST Act/GGST Act, which provides that the last date for taking ITC is the due date of furnishing the return under Section 39 for the month of September following the end of the financial year or the relevant annual return, whichever is earlier.

2. Interpretation of Section 16(4) and Section 39 of the CGST Act/GGST Act:
Section 16(4) of the CGST Act/GGST Act specifies that a registered person shall not be entitled to take ITC in respect of any invoice or debit note for supply of goods or services or both after the due date of furnishing the return under Section 39 for the month of September following the end of the financial year or furnishing of the relevant annual return, whichever is earlier. The writ-applicant contended that the return under Section 39 is Form GSTR-3, not GSTR-3B, as per Rule 61 of the CGST Rules/GGST Rules.

3. Applicability of Form GSTR-3B as a Return Under Section 39 of the CGST Act/GGST Act:
The respondents argued that Form GSTR-3B is a return under Section 39 of the CGST Act/GGST Act, citing Rule 61(5) which allows the Commissioner to specify the manner and conditions under which the return shall be furnished in Form GSTR-3B. The respondents maintained that the impugned press release correctly stated the last date for availing ITC, aligning with Section 16(4) of the CGST Act/GGST Act.

4. Impact of Rule 61 of the CGST Rules/GGST Rules on the Filing of Returns:
Rule 61(1) of the CGST Rules/GGST Rules mandates that the return under Section 39 should be furnished in Form GSTR-3. Initially, Form GSTR-3B was introduced as a temporary measure due to technical issues with the GSTN portal. The government later amended Rule 61(5) to clarify that Form GSTR-3B is not in lieu of Form GSTR-3. The court noted that the impugned press release's clarification was contrary to Section 16(4) of the CGST Act/GGST Act read with Section 39(1) and Rule 61 of the CGST Rules/GGST Rules.

Conclusion:
The court concluded that the impugned press release dated 18.10.2018 was illegal to the extent that it clarified the last date for availing ITC as the last date for filing the return in Form GSTR-3B. This clarification was found to be contrary to the statutory provisions of the CGST Act/GGST Act and the associated rules. The writ-application was disposed of accordingly.

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