Gujarat HC stays Recovery of Interest from Delayed GST Payment [Read Order]

Delayed - GST - Payment - Taxscan

The Gujarat High Court has stayed the recovery of interest on the delayed GST payment from taxpayers who have filed their returns in GSTR-3B Form

TaxScan had reported earlier about the CBIC issuing a notice after doubts were raised by field formations, whether the interest has to be paid on gross tax liability or on the net cash liability,delayed GST payment . The Board had then requested all Principal Chief Commissioners and Chief Commissioners of Central Tax to look into the issue personally and to urge the field formations under their jurisdiction for making recovery of applicable interest from the identified taxpayers and to furnish a weekly report of GSTIN wise recovery of interest made in this regard. The estimated amount of recovery from such a process is said to be around Rs 46,000 crore.

A division bench consisting of Justice J B Pardiwala and Justice Bhargav D Karia said while hearing a petition filed by Amar Cars Private Limited, “We direct the respondents not to take any coercive steps for the purpose of recovery of the interest,” The court has also issued a notice to Centre, Gujarat Government, and the GST Council. Respondents including Central and State Government and three others have to reply to notice by March 11.

To Read the full text of the Order CLICK HERE