Interest on delay in filing of GSTR-3B to be paid even if tax was already deposited in ECL: HC

Case Details: RSB Transmissions (India) Ltd. v. Union of India - [2022] 145 taxmann.com 1 (Jharkhand)

Judiciary and Counsel Details

• • Aparesh Kumar Singh & Deepak Roshan, JJ.
  • M.S. Mittal, Sr. Adv. & Salona Mittal, Adv. for the Petitioner.
  • P.A.S. Pati, Adv. for the Respondent.

Facts of the Case

The department levied interest due to delay in filing of GSTR-3B returns by the petitioner. However, the petitioner denied to pay interest on delay in filing of GSTR 3B for disputed periods on ground that amount of tax had already been deposited prior to filing of GSTR 3B return in its electronic Cash Ledger.

The question before the High Court was whether the amount deposited as tax through valid challans by a registered person in the Government Exchequer prior to the filing of the GSTR 3B returns could be treated as discharge of the tax liability.

High Court Held

The Honorable High Court noted that Electronic cash ledger is just an e-wallet where cash can be deposited at any time by creating requisite challans. The assesse can claim refund of the amount deposited in Electronic cash ledger any time by following procedure prescribed under GST Act and the computation of interest liability is dependent upon delay in filing of returns beyond due date. Therefore, it was held that revenue had rightly computed interest on delayed payment since petitioner had delayed in filing returns for disputed period.