GSTR return delays and best judgment assessment: condonation leads to deemed withdrawal of assessment but interest remains payable.

Best judgment assessments arising from non-filing of GSTR returns were addressed by allowing condonation of delay in filing GSTR-3B, resulting in assessment orders being treated as deemed withdrawn; this follows precedent and statutory amendment principles and accordingly the assessments are relieved, while taxpayers remain liable to pay interest on any delayed tax payments. The decision distinguishes withdrawal of assessments from absolution of monetary obligations, preserving interest liability despite withdrawal of assessment orders and clarifying that relief from assessment does not extinguish interest due on late tax remittance.

---

---

Issues: Whether the best judgment assessment orders dated 01.04.2023 and 19.07.2023 are to be deemed withdrawn under Section 62 of the Goods and Services Tax Act, 2017, in view of subsequent filing of GSTR-3B returns and payment of tax within the extended period provided by amendment/proviso.

Analysis: Section 62 provides for withdrawal of best judgment assessment when the dealer files the required return and pays the tax within the statutory period and its proviso permits an additional extension on payment of prescribed penalty. The petitioner filed GSTR-3B returns and paid the taxes after the assessment orders but within the extended timeframe made available by amendment and proviso. The principle applied by a coordinate High Court recognizing the spirit of the legislative amendment and condoning delay is followed.

Conclusion: The assessment orders dated 01.04.2023 and 19.07.2023 for the months of February 2023 and March 2023 to May 2023 are deemed to have been withdrawn; liability to pay interest on delayed tax, if any, remains.

---