[Opinion] No Payment of Interest on Late Filing of GSTR-3B if Tax is Deposited in Electronic Cash Ledger Within Due Dates

CA Rajesh Kumar Khandelwal – [2024] 161 taxmann.com 700 (Article)

“In this article, I’ve examined whether a taxpayer is obligated to pay interest if they deposited GST via PMT 06 into their electronic cash ledger (ECL) on or before the due date for filing a monthly return in form GSTR-3B. However, if the monthly return in form GSTR-3B is filed after the due date, and the output liability has already been settled by debiting the electronic cash ledger, we need to determine the specific date on which the liability is considered discharged. Is it:

1. The date when the taxpayer deposited the tax liability in the ECL through form PMT 06?
2. The date when they filed their monthly return in form GSTR-3B?
3. The date when the GST liability was debited from the Electronic cash ledger?”

Section 39. (7)

Every registered person, who is required to furnish a return under sub-section (1) or sub-section (2) or sub-section (3) or sub-section (5) of section 39, shall pay to the Government the tax due as per such return not later than the last date on which he is required to furnish such return.

According to Section 39(7) of the Act, taxpayers are required to pay the tax to the Government before the last date for filing the monthly return in form GSTR-3B. This implies that the payment of tax must happen no later than the last filing date for monthly GSTR-3B returns. It’s important to note that this section specifically addresses tax payment and not the filing process for monthly GSTR-3B

“39. Furnishing of returns.—

Section 39(1) Every registered person, other than an Input Service Distributor or a non-resident taxable person or a person paying tax under the provisions of section 10 or section 51 or section 52 shall, for every calendar month or part thereof, furnish, in such form and manner as may be prescribed, a return, electronically, of inward and outward supplies of goods or services or both, input tax credit availed, tax payable, tax paid and such other particulars, in such form and manner, and within such time, as may be prescribed, on or before the twentieth day of the month succeeding such calendar month or part thereof.”

The aforesaid section 39(1) states that a taxpayer will provide the following particulars in his monthly return in Form GSTR-3B:-

Inward and outward supplies of goods or services or both,

Input tax credit availed,

Tax payable,

Tax paid and

Such other particulars as may be prescribed,

From the above, it is clear that in the monthly returns in form GSTR-3B, it is mandatory to provide the details for the tax paid. It means before filing Form GSTR-3B, the tax should have been paid by the taxpayer person as provided in Section 39(1) of the Act. If tax has not been then details can not be provided in the GSTR-3B.

Based on the above it is stated that section 39(1) deals with the filing of monthly GSTR-3B it has nothing to do with the payment of tax.

Section 39(1) deals with filing of monthly GSTR-3B and section 39(7) deals with payment of tax not later than the last date on which the taxpayer required to furnish form GSTR-3B

Upon careful examination of both Section 39(1) and Section 39(7), it becomes apparent that a taxpayer should first pay the tax using form PMT-06. Subsequently, they provide details of this tax payment in the GSTR-3B return before uploading it.

Here it is important to mention that, for payment of tax to the Government the filing of the monthly returns in Form – GSTR-3B is not the matter but the last date for furnishing the monthly return is important. Why it is important. It is important because tax should have been paid on or before the last date of filing the monthly return in Form GSTR-3B. (Section 39(7)) Thus, whether the monthly return is filed in time or not but the GST has to be remitted not later than the last date for filing the monthly returns.

Thus, in summary, in terms of Section 39(1) of the Act, while filing the monthly returns in Form GSTR-3B, the taxpayer has to state the amount of tax paid, which means before the filing of returns, the tax should have been paid.

Now the question arises when a registered person deposits the tax amount in his electronic cash ledger through PMT-06 but he has not filed his monthly GSTR-3B within the due date whether the registered person will be liable to interest under Section Subsection (1) of Section 50 of CGST Act.

When interest is payable where there is a delay in fling of monthly GSTR-3B

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