Miss One Instalment, Pay Full GST Dues: Uttarakhand HC Allows Taxpayer to Seek Instalment Relief u/s 80 [Read Order]
Uttarakhand High Court allows taxpayer to seek instalment relief under Section 80 of the GST Act and bars coercive action until decision is made
Instalment
Instalment
In a recent ruling, the Uttarakhand High Court observed that a taxpayer may seek instalment relief under Section 80 of the GST Act, 2017, and that no coercive action should be taken until a decision is made by the competent authority.
Suraj Enterprises, the petitioner filed a writ petition challenging the penalty order dated 2 January 2025 and the GST DRC-01 notice dated 8 October 2024, through which the department demanded a total of Rs. 17,21,389.
The petitioner is a registered firm engaged in the sale and purchase of garments. Its GST registration was cancelled on 8 May 2024 after a show-cause notice was issued on 27 February 2024. Later, the department issued a demand and penalty notice under GST laws, directing payment by 2 March 2025, failing which recovery proceedings would begin.
The petitioner’s counsel argued that the firm was facing financial difficulties and was unable to pay the entire amount at once. It was submitted that the petitioner was willing to pay the dues in instalments and should be permitted to approach the Commissioner under Section 80 of the GST Act, 2017.
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Section 80 allows the Commissioner to permit payment of any amount due under the Act, other than self-assessed tax, in monthly instalments not exceeding twenty-four, subject to interest and other conditions. The court pointed out that if a taxpayer defaults on even one instalment, the full outstanding balance becomes payable immediately without further notice.
The State counsel explained that there was no objection to the petitioner approaching the Commissioner for relief under Section 80 of the GST Act.
The Division Bench of Chief Justice G. Narendar and Justice Subhash Upadhyay observed that if the petitioner files an application within ten days, the competent authority must take a decision within two weeks. Until then, no coercive steps shall be taken. If the application is not filed within ten days, the department may proceed in accordance with law.
The writ petition was accordingly disposed of.
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