Dear Friends,
One of my client has paid the tax liability after setting of ITC from July to March,2018 under GST regime. However, due to some technical glitches, GSTR-3B and GSTR-1 was not filed. Now, my client has received a notice from the GST department for interest liability and even after giving explanation, they said the money lying in cash ledger, until the return filed and adjusted against the liability from the cash credit ledger, the interest need to be paid. Please advice me, how to handle this matter. Also, please let me know any case laws supporting this issue.
Taxpayer Faces Interest for Unpaid GST Due to Filing Issues; Considers Writ Petition Citing Technical Glitches A client paid their tax liability using Input Tax Credit (ITC) from July to March 2018 under the GST regime but failed to file GSTR-3B and GSTR-1 due to technical issues. The GST department issued a notice for interest liability, stating that the cash ledger funds do not count as payment until returns are filed and adjusted. Respondents clarified that without filing returns, the liability remains unpaid, attracting interest. Suggestions included filing a writ petition and providing evidence for technical glitches. A case favoring the taxpayer was referenced, and the client plans to approach the Madras High Court. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
