Double Taxation on GSTR-3B Delay Unsustainable: Madras HC Quashes Duplicate GST Interest Order [Read Order]

The Madras High Court has quashed a duplicate gst order passed by the respondent against the petitioner, holding that double taxation on a delay in filing GSTR-3B is unsustainable.

The brief facts are that, on Sri Velavan Fireworks, the petitioner, the proceedings were initiated. An order dated 26.08.2022 was passed imposing interest and penalty for the delay in filing the return in GSTR3B.

For the delay period, April 2020 to March 2021, the interest was quantified as a sum of Rs. 71,963/- and the said amount was also duly paid by the petitioner.

However, once again, the respondent passed the impugned order on 06.01.2023 for the very same issue and very same period, whereby the interest was quantified as a sum of Rs.68,025/-.

It was contended that the said demand leads to double taxation and the same is not sustainable in law.

The bench of Justice Krishnan Ramasamy observed that two different orders were passed by two different Authorities for imposing delay in filing the GSTR-3B returns pertaining to the very same period, for April 2020 to March 2021. It was further observed that there was a clear duplication of proceedings, which led to double taxation.

Read more:Employer vs Employee PF/ESI Contributions Treatment under Income Tax:Supreme Court to Resolve Deduction Issue

It was held that, “When such being the case, as rightly contended by the petitioner, the impugned order passed by the respondent is not sustainable in law and hence, the same is liable to be quashed.”

Thus the writ petition was allowed.

Support our journalism by subscribing to Taxscanpremium. Follow us on Telegram for quick updates