Interest for Belated GST Payment: Madras HC Confirms Interest Levied u/s 50(1) of CGST/ TNGST Act [Read Order]
The Court allowed the petitioner to appeal against the penalty of ₹5.72 lakhs imposed under Section 73(9) read with Section 122(2)(a), finding scope for interference with the penalty order.
![Interest for Belated GST Payment: Madras HC Confirms Interest Levied u/s 50(1) of CGST/ TNGST Act [Read Order]](https://images.taxscan.in/h-upload/2025/07/08/2061292-gst-interest-1.webp "Interest for Belated GST Payment: Madras HC Confirms Interest Levied u/s 50(1) of CGST/ TNGST Act [Read Order]")
The High Court of Madras,confirmed the levy of interest under Section 50(1) of the Central Goods and Service Tax/ TamilNadu Goods and Service Tax (CGST/TNGST) Act, 2017 read with Rule 88B for belated tax payment. G.P. Construction,petitioner-assessee, contended that interest and penalty were wrongly imposed despite payment of tax, though belatedly. It was further submitted that...
The High Court of Madras,confirmed the levy of interest under Section 50(1) of the Central Goods and Service Tax/ TamilNadu Goods and Service Tax (CGST/TNGST) Act, 2017 read with Rule 88B for belated tax payment.
G.P. Construction,petitioner-assessee, contended that interest and penalty were wrongly imposed despite payment of tax, though belatedly. It was further submitted that the reply to the show cause notice was not considered, resulting in a palpable error in the impugned order.
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The Department opposed the plea, stating that the petition lacked merit and that the petitioner had an effective alternate remedy by way of appeal before the Appellate Authority.
Justice C.Saravanan examined the arguments from both sides and noted that the petitioner had indeed paid the tax belatedly. It held that the interest levied under Section 50(1) of the CGST/TNGST Act, 2017 read with Rule 88B of the CGST Rules, 2017 was justified and did not warrant interference.
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The Court clarified that if the appeal is filed within 30 days from receipt of the order and the petitioner deposits 10% of the disputed penalty as required under Section 107, the Appellate Commissioner shall hear and decide the matter without raising any issue of limitation.
Accordingly, the writ petition was disposed of.
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