2024 (2) TMI 125 - HC - GST

Delayed GST Return Filing: Tax Liability Discharged When Amounts Credited by Deadline, Proceedings Quashed

HC quashed impugned GST proceedings related to delayed GSTR-3B return filing for 2017-2018. Following prior precedent, the court held that once tax ... Filing of GSTR-3B returns under Section 39 - credit to the Government not later than the last date for filing the monthly returns - discharge of tax liability upon deposit by generation of GST PMT-06 - interest liability confined to delayed payment after the due date under Section 50(1)Filing of GSTR-3B returns under Section 39 - credit to the Government not later than the last date for filing the monthly returns - discharge of tax liability upon deposit by generation of GST PMT-06 - interest liability confined to delayed payment after the due date under Section 50(1) - Validity of the impugned proceeding dated 07.06.2023 passed for belated filing of GSTR-3B returns for 2017-2018 in light of earlier decision in W.P.No.16866 of 2023. - HELD THAT: - The Court applied the principle enunciated in W.P.No.16866 of 2023 (para 72) that where tax collected by a registered person is credited to the account of the Government not later than the last date for filing the monthly returns, the tax liability is discharged from the date of such credit. The Court noted that payment made by generation of GST PMT-06 is immediately credited to the Government account and, for accounting purposes, thereafter deemed credited to the electronic cash ledger as per the Explanation to Section 49(11). Consequently, where such credit to the Government occurs on or before the last date for filing the monthly return, liability is treated as discharged and any liability to pay interest arises only for the delayed period of payment after the due date under Section 50(1). Applying that law to the facts before it, the Court found the impugned proceeding to be untenable and quashed it. [Paras 4, 6]Impugned proceedings dated 07.06.2023 quashed; writ petition allowed.Final Conclusion: The writ petition is allowed; the impugned proceedings in GSTN 33AAGCS6736C1ZI/2017-2018 dated 07.06.2023 are quashed in view of the Court's earlier ruling that credit to the Government on or before the last date for filing monthly returns discharges the registered person's liability, and interest is payable only for any delayed payment after the due date. No costs. Issues involved: Challenge to impugned proceedings in GSTN 33AAGCS6736C1ZI/2017-2018 dated 07.06.2023 regarding delayed filing of GSTR-3B returns for assessment years 2017-2018.Judgment Summary:Issue 1: Delayed filing of GSTR-3B returnsThe petitioner filed GSTR-3B returns belatedly under Section 39 of the TNGST Act, 2017 for assessment years 2017-2018, leading to impugned proceedings by the respondent. The petitioner challenged these proceedings through a writ petition.Court's Decision:The Court referred to a previous case (W.P.No.16866 of 2023) where it was ruled that the credit to the government's account should occur by the last date for filing monthly returns. Once the amount is paid and credited to the government's account, the tax liability of the registered person is discharged. Any default in payment after the due date attracts interest. Following this precedent, the Court quashed the impugned proceedings in GSTN 33AAGCS6736C1ZI/2017-2018 dated 07.06.2023.Result:The writ petitions were allowed with no costs, and the connected miscellaneous petitions were closed.