. M/S.Neelakanteswara Constructions vs. The Superintendent
Held
The Court held that interest on delayed payment of tax should be calculated only on the portion of tax paid through the electronic cash ledger, as per the amended proviso to Section 50(1) of the CGST Act. The calculation needs to be done after issuing notice to the petitioner.
Facts
The petitioner, a partnership firm, sought to question the demand of interest on delayed GST returns. The firm had delayed filing returns for July 2017 to December 2019, and interest was levied on the gross tax liability, not considering the input tax credit available.
Key Issues
Whether interest on delayed GST payment can be levied on the entire tax liability or only on the amount paid in cash after utilizing input tax credit. Whether the amended proviso to Section 50(1) of the CGST Act is applicable retrospectively.
Sections Cited
Section 50, Section 73, Section 42, Section 43
AI-generated summary — verify with the full judgment below
HON'BLE SRI JUSTICE C. PRAVEEN KUMAR AND HON'BLE SRI JUSTICE A.V.RAVINDRA BABU WRIT PETITION No.6199 OF 2020
ORDER: (Per Hon'ble Sri Justice C. Praveen Kumar)
Heard Sri Shaik Jeelani Basha, learned counsel for the petitioner, Sri Suresh Kumar Routhu, learned Standing Counsel for CBIC, appearing for the 1st respondent, and Sri Harinath N., learned Assistant Solicitor General, appearing for the 2nd respondent-Union of India.
The petitioner herein is a partnership firm, carrying on business of construction and is registered under the provisions of the Central Goods and Services Tax Act, 2017 (for short, the „CGST Act‟). The petitioner claims to be entitled to input tax credit of Goods and Services Tax (for short, the „GST‟) paid to its vendors in respect of supply of goods and services.
While filing monthly returns in Form GSTR-3B, the petitioner is required to show total output tax liability on supply of goods and services and reduce the eligible input tax credit available in the Electronic Credit Ledger maintained by the respondents. The difference between output tax liability and input tax credit is the actual amount payable by the petitioner.
The judgment continues below.
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