INTEREST LIABILITY

[BARUN MUKHERJEE]

Respected sir,

Taxpayer had wrongly filed GSTR-3B for the month of Aug'20 by showing nil liability but the tax amount is duly remitted by the tax payer to the Government treasury account maintained with RBI and the tax amount is paid to the Government (both Central and State) under the appropriate heads such as CGST, SGST, IGST, etc., through the treasury challans in Form PMT-06 with in due time i.e. 20/09/2020. After that the taxpayer had paid the tax through DRC-03 by debiting electronic cash ledger. Whether interest would be payable if the amount equal to the tax due is available in the electronic cash ledger (ECL).

AI Summary

Dispute on Interest Liability for Late GSTR-3B Filing When Tax Paid via PMT-06; Conflicting Court Opinions Highlighted A taxpayer incorrectly filed a nil liability GSTR-3B for August 2020, despite having paid the tax through Form PMT-06. Later, the tax was paid again via DRC-03 by debiting the electronic cash ledger. The question raised was whether interest is payable if the tax amount is available in the electronic cash ledger. Responses varied, with one stating interest is payable as the tax is credited only upon offsetting liability, while another cited a Madras High Court ruling suggesting that tax payment is effective upon deposit via PMT-06. The discussion highlighted differing judicial opinions and potential Supreme Court involvement.