Non-Filing of Return and Non-Payment of GST within due date is an Offence: Madhya Pradesh High Court denies Bail [Read Order]

The Madhya Pradesh High Court has ruled that Non-filing of Return and Non-payment of GST within the due date is an Offence.

While denying the Bail Application, the Court also observed that the taxpayer has to declare their tax liability for a month in GST return (GSTR-1) by 10th day of the subsequent month. And pays liability so declares in return GSTR-3B. The due date for payment of GST liability for a month is the 20th day of the subsequent month.

The ruling is by Single Bench consisting of various others. Justice Rajeev Kumar Dubey in the case of Shailesh Rajpal Versus Commissioner is some of them.

The ruling is made while considering a bail application is by Shailesh Rajpal who owned M/s Sai Sun and M/s Sai Sun Outsourcing Services Private Limited. The companies collect the Service tax and GST from their clients on gross value. But did not pay/short paid the same to the government exchequer.

Further, the turnover is completely suppressed by the applicant and in this regard, he did not file any GST return. The applicant also evaded the tax amount.

However, the applicant submits that the applicant is innocent and has been falsely implicated in the matter. The applicant further adds the time to file the return. And to deposit the final amount of taxes due on him has not lapsed. The applicant argues the information mentioned in tally software is not correct and actual receipts of income during 2018-19 shall be submitted after scrutiny of data.

The Revenue, however, opposed the prayer and submitted through the last date to file an annual return of GST for the year 2017-18 is 30/11/2019 and for the year 2018-19 is 31/12/19.

A taxpayer has to declare their tax liability for a month in GST return GSTR-1 by 10th day of the subsequent month and has to pay liability declares in return GSTR-3B and the due date for payment of GST liability of a month is the 20th day of the subsequent month.

The Revenue further argues the case after knowing the tax liability. The applicant deliberately suppresses the turnover to evade the GST amount collected by him from his clients. The revenue argues that annual return is opportunity extended by the government. To rectify inadvertent mistakes that may have crept in monthly Returns.

The court hence denied the bail pointing out, “…the alleged huge tax evasion by the applicant and the contention of the learned counsel of the respondent. Also keeping in view that the investigation is going on. And apprehensions of applicant tampering with the evidence cannot be ruled out”.

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