Pandemic Extensions Don't Automatically Extend GST Annual Return Limitation Period Under Section 73(10)

HC ruled on GST annual return limitation period. The court granted an interim stay on the assessment order, finding that the pandemic-related extension for filing returns does not automatically extend the three-year period for initiating proceedings under Section 73(10). The judgment emphasizes the statutory interpretation of limitation periods and the Commissioner's lack of authority to extend filing deadlines beyond statutory provisions.

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Issues:
1. Limitation period for initiating proceedings under Section 73(10) concerning the filing of annual returns under the Central Goods and Services Tax Act, 2017.

Analysis:
The judgment pertains to a case concerning the Assessment Year 2018-19 and the assessment order passed under the Central Goods and Services Tax Act, 2017. The main issue raised is regarding the limitation period for initiating proceedings under Section 73(10) in relation to the due date of filing annual returns. The petitioner argues that the due date for filing the annual return is the 31st day of December following the end of the financial year, as per Rule 80. Section 73(10) mandates proceedings to be initiated within three years from the due date of filing annual returns. However, the respondent contends that the due date for filing the return was extended to 31.12.2020, in line with a Supreme Court decision extending limitation periods due to the pandemic.

The court notes that the due date for filing the return was indeed extended to 31.12.2020, as per Annexure P-3, based on the Supreme Court's decision. However, the court opines that the extension provided in Section 44(2) is only for filing the return after the original three-year period, not for extending the period for initiating proceedings under Section 73(10). The court highlights that Section 73(10) specifies three years from the due date of filing annual returns, not from the extended due date. Additionally, the court points out that the Commissioner lacks the authority to issue a notification for extending the due date for filing annual returns, as it falls under the purview of Section 44(1) and not Section 44(2).

Consequently, the court grants an interim stay on the assessment order (Annexure P-3) based on the prima facie view that the extension granted for filing returns does not automatically extend the period for initiating proceedings under Section 73(10). The court directs the filing of a counter affidavit within three weeks and schedules the next hearing for 11.09.2024.

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