GST return filing delays can be condoned beyond 30-day limit under Section 62(2) for sufficient cause

HC held that while petitioner failed to file GST returns for December 2022, January 2023, and February 2023 within prescribed time limits, resulting in best judgment assessment orders under Section 62(1) of GST Act, the 30-day limitation under Section 62(2) for filing returns is directory, not mandatory. Court ruled that delay can be condoned for reasons beyond assessee's control upon application with sufficient cause. Petitioner directed to file condonation application within 15 days; respondent must consider application on merits and permit filing of revised returns if satisfied with reasons provided.

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Issues involved:
The issues involved in this case are related to challenging the best judgement assessment orders passed by the respondent under Section 62(1) of the Goods and Services Tax Act, 2017 for the months of December 2022, January 2023, and February 2023 due to the petitioner's failure to file returns within the prescribed time limit.

Summary:
The petitioner failed to file returns for the mentioned months within the stipulated time frame, leading to the respondent passing assessment orders under Section 62(1) of the GST Act. The petitioner later filed the returns for December 2022 and January 2023 on 30.04.2023 and for February 2023 on 24.06.2023. The petitioner sought to quash the assessment orders, citing financial difficulties as the reason for the delay.

The respondent contended that the petitioner did not file the returns within the specified time limit and argued that the benefit under Section 62(2) of the GST Act is only available if returns are filed within 30 days of receiving the assessment orders.

The court examined the provisions of Section 62 of the GST Act, emphasizing that a proper officer may assess the tax liability of a registered person to the best of his judgment if returns are not furnished within the prescribed time frame.

Regarding the petitioner's failure to file returns within 30 days as per Section 62(2) of the Act, the court deliberated on whether the petitioner would lose the opportunity to file returns or could still do so by providing valid reasons for the delay.

The court highlighted that the 30-day period for filing returns after the assessment order is served is directory in nature and can be condoned if the delay is due to reasons beyond the petitioner's control, subject to payment of applicable charges.

The court directed the petitioner to file an application for condonation of delay within 15 days and instructed the respondent to consider the reasons provided by the petitioner before permitting the filing of revised returns.

In conclusion, the writ petitions were disposed of with the mentioned directions, and no costs were awarded. The connected miscellaneous petitions were also closed.

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