GST Payment in Instalments Denied: Section 80 of CGST Act Prohibits Instalment Plans for Self-Assessed Taxes

The HC rejected petitioner's request to pay GST for February and March 2021 in instalments. The court noted that while petitioner faced financial difficulties due to COVID-19, Section 80 of CGST Act restricts Commissioner's power to permit instalment payments for self-assessed taxes. Given that petitioner had already delayed payment for 12 months and respondents were willing to accept full payment, the court directed petitioner to clear all tax liability within one month of judgment, with compliance ensuring continued GST registration.

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Issues:
1. Petitioner seeks direction for payment of tax in instalments for February and March 2021.
2. Financial constraints due to Covid-19 pandemic affecting tax payment.
3. Interpretation of Section 80 of the CGST Act regarding payment of tax in instalments.
4. Pending judgments in Writ Appeals regarding permission for instalment payments.
5. Dispute over the power of Commissioner to grant instalments for self-assessed returns.
6. Applicability of previous judgments allowing instalment payments.
7. Decision on granting further instalment facility in the present case.

Analysis:
1. The petitioner, a GST-registered dealer, requested permission to pay outstanding taxes for February and March 2021 in 20 monthly instalments due to financial difficulties arising from the Covid-19 pandemic and delayed payments from a project undertaken for the Kerala Water Authority.
2. The respondents argued against permitting instalments, citing Section 80 of the CGST Act, which restricts instalment payments for self-assessed taxes. They also highlighted pending judgments on similar issues in writ appeals.
3. The court acknowledged the petitioner's financial challenges but noted the limitation on the Commissioner's power to allow instalment payments for self-assessed returns under Section 80 of the Act.
4. While previous judgments were cited by the petitioner to support their request for instalments, the court emphasized that the Commissioner's authority to grant instalments is restricted in cases of self-assessed returns.
5. The court decided not to delve into the broader question of permitting instalments contrary to statutory provisions, as the petitioner had already delayed payment for almost 12 months and the respondents were willing to accept full immediate payment.
6. Consequently, the court directed the petitioner to clear the tax liability for February 2021 onwards within one month of receiving the judgment copy, with acceptance of the full amount leading to continued registration under the Act, thereby disposing of the writ petition.

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