Input tax credit and GST interest liability remain under scrutiny pending disclosure of the interest computation sheet.

The article addresses whether input tax credit may be availed before the due date of the monthly GST return without attracting interest under section 50, and whether the demand for interest required further scrutiny. It notes the petitioner's contention that input tax credit is merely credit of tax already paid and that interest should not apply, while the State relied on the automatic character of interest under the GST provisions. Because the interest computation sheet was not disclosed, the court did not finally determine entitlement to input tax credit or the levy of interest and directed further hearing after a supplementary affidavit.

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Issues: Whether the petitioner was entitled to avail input tax credit before the due date of the monthly return without liability to interest under section 50 of the Goods and Services Tax law, and whether the computation and demand of interest required further consideration before any interim order.

Analysis: The writ petition raised a challenge to the demand of interest on delayed filing of monthly returns, with the petitioner asserting that input tax credit is only credit of tax already paid and that interest could not be levied on such credit. Reference was made to the statutory provisions governing interest under the Central Goods and Services Tax Act, 2017, the corresponding West Bengal GST provisions, and the proposed amendment in the Finance (No. 2) Act, 2019. The State relied on the automatic nature of interest liability under the relevant GST provisions. As the computation sheet of interest had not been disclosed, the matter required further hearing and the petitioner was permitted to file a supplementary affidavit.

Outcome: No final adjudication was made on the entitlement to input tax credit or on the levy of interest. Further hearing was directed after filing of supplementary affidavit.

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