Delays in GST Payment Due to Technical Glitch: Court Directs Bank Guarantee

The court addressed a case involving a writ petitioner facing delays in GST payment due to a technical glitch in the Tax Department's portal from July 2017 to January 2018. The petitioner had credits but encountered difficulties in utilizing them, leading to a demand for interest payment. The court directed the petitioner to provide a bank guarantee, communicate glitch details, and involve the IT-Grievance Redressal Committee for resolution. Emphasis was placed on utilizing the established mechanism to address technical issues effectively and ensure compliance with procedures.

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Issues:
1. Delay in payment of GST from July 2017 to January 2018.
2. Technical glitch in the Tax Department's portal affecting GST payments.
3. Dispute over interest payment of over &8377; 1.64 crores.
4. Establishment of IT-Grievance Redressal Mechanism for tax payers facing technical glitches.

Issue 1: Delay in payment of GST from July 2017 to January 2018
The judgment addresses the case of a writ petitioner who encountered difficulties in paying Goods and Services Tax (GST) from July 2017 to January 2018 due to a technical glitch in the Tax Department's portal. The petitioner had credits in the form of Input Tax Credit (ITC) as of June 30, 2017, which could have been used to pay GST. The delay in payment led to a demand for interest of over &8377; 1.64 crores. The court noted that the technical glitch was acknowledged, and the petitioner made efforts to rectify the issue.

Issue 2: Technical glitch in the Tax Department's portal affecting GST payments
The petitioner presented a complaint to the GST Seva Kendra and provided screen shots as evidence of the failed attempts to pay GST using available ITC. The court observed that while there was no dispute regarding the availability of ITC, the main contention revolved around whether the technical glitch indeed hindered the payment of GST for the specified period. The court decided to defer this determination to the IT-Grievance Redressal Committee established by the Government for addressing such technical issues.

Issue 3: Dispute over interest payment of over &8377; 1.64 crores
The court directed the writ petitioner to provide a bank guarantee and a personal bond to cover the outstanding sum after deducting the bank guarantee amount. Additionally, the petitioner was instructed to communicate the technical glitch details to the Principal Commissioner of GST and Central Excise within a specified timeframe. The IT-Grievance Redressal Committee was tasked with reviewing the complaint and providing a decision promptly.

Issue 4: Establishment of IT-Grievance Redressal Mechanism for tax payers facing technical glitches
The court highlighted the existence of an IT-Grievance Redressal Mechanism established by the Government to address difficulties faced by taxpayers due to technical glitches on the GST portal. The mechanism aimed to provide relief to taxpayers by allowing the filing or amending of forms or returns affected by such glitches. The court emphasized the importance of utilizing this mechanism to resolve issues related to technical glitches effectively.

In conclusion, the judgment focused on resolving the issues related to the delay in GST payment, technical glitches affecting the payment process, the dispute over interest payment, and the utilization of the IT-Grievance Redressal Mechanism to address such technical issues efficiently. The court's decision aimed to facilitate a fair resolution while ensuring compliance with the established procedures and mechanisms.

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