GSTR-3B filing and admitted GST dues: self-assessed liability remains recoverable without prior Section 73 adjudication.

GSTR-1 alone was treated as a declaration of outward supplies, but it did not discharge GST liability without payment through the prescribed return mechanism; filing GSTR-3B was mandatory for discharge of self-assessed tax under Rule 61(3), as reinforced by the 2019 amendment. Where the taxpayer had itself quantified the liability in GSTR-1 but had not paid it, the dues were treated as admitted and unpaid, so recovery under Section 79(1)(c) could proceed against persons holding money for the taxpayer without first undertaking a fresh determination under Section 73.

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Issues: (i) Whether filing of GSTR-3B was mandatory for discharge of GST liability when the taxpayer had filed GSTR-1 returns; (ii) Whether recovery proceedings under Section 79(1)(c) of the Central Goods and Services Tax Act, 2017 could be initiated against the tenants without a prior determination of tax under Section 73.

Issue (i): Whether filing of GSTR-3B was mandatory for discharge of GST liability when the taxpayer had filed GSTR-1 returns.

Analysis: GSTR-1 was treated as a declaration of outward supplies and the tax liability disclosed therein was not discharged until payment was made through the prescribed return/payment mechanism. Rule 61(3) of the Central Goods and Services Tax Rules, 2017 required the registered person to discharge liability through the return in FORM GSTR-3B. The amendment introduced by Notification No. 49/2019-Central Tax dated 09.10.2019 was relied upon to reinforce that GSTR-3B filing was compulsory from the relevant date.

Conclusion: Filing of GSTR-3B was mandatory, and the taxpayer remained in default for non-payment of the self-assessed GST liability.

Issue (ii): Whether recovery proceedings under Section 79(1)(c) of the Central Goods and Services Tax Act, 2017 could be initiated against the tenants without a prior determination of tax under Section 73.

Analysis: The tax liability had already been quantified by the taxpayer itself in the GSTR-1 returns, so there was no occasion for a fresh determination under Section 73. Since the liability was admitted and unpaid, the recovery machinery under Section 79(1)(c) was held to be available, including notice to persons from whom money was due to the taxpayer. The objection based on Section 78 was also rejected because the case was one of recovery of an admitted dues, not of adjudicated demand.

Conclusion: Recovery under Section 79(1)(c) was valid and prior proceedings under Section 73 were not required on these facts.

Final Conclusion: The writ petition failed because the GST liability stood self-assessed but unpaid, and the departmental recovery action was held to be within the statutory framework.

Ratio Decidendi: Where GST liability has been self-assessed in statutory returns but not discharged, the Department may invoke the recovery mechanism under Section 79 without first resorting to adjudication under Section 73, and return filing must be completed in the prescribed manner for the liability to stand discharged.

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