Court Buzz, GST

Interest for delay in payment of GST not to be charged retrospectively on the Input Tax Credit :Orissa HC

Case: Prasanna Kumar Bisoi v/s Union of India

Forum: Orissa High Court

Facts

The Petitioner filed a writ petition before the Hon’ble Orissa HC stating that he is registered under Central Goods and Service Tax. He has filed the returns for the financial year 2017-18, 2018-19 and 2019-20 at a belated stage and availed Input Tax Credit at the time of filing GSTR-3B returns, as Works Contractor. The Superintendent, Central GST and Central Excise, Berhampur (Respondent No. 3) demanded interest under Section 50 (1) of the C.G.S.T Act, 2017 in respect of the above three financial years for Rs.2,24,487/- on the head that demand of interest is payable on ITC set off. 

Key points

Learned counsel for the Petitioner submitted that in the 39th meeting of GST Council held on 14.03.2020 it was decided that interest for delay in payment of GST is to be charged on the Net Cash Tax Liability w.e.f. 01.07.2017 retrospectively but not in the Input Tax Credit. Additionally, the Petitioner has filed a representation before the Superintendent, Central GST and Central Excise, Berhampur (Respondent No. 3) with a prayer not to charge the interest on the availed Input Tax Credit and to drop the proceeding in view of the decision taken in the 39th meeting of GST Council. 

Thus the Hon’ble HC disposed off the Writ Petition with a direction to the Superintendent, Central GST and Central Excise, Berhampur (Respondent No.3) to dispose of the representation filed by the Petitioner keeping in view the decision taken in the 39th meeting of GST Council. 

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