2018 (9) TMI 1034 - HC - GST

Timelines prescribed under the Extension Notifications (Notification Number 18/2017, Notification number 19/2017 and Notification Number 20/2017- dt. 8th August, 2017 under GST Act, 2017) - Quashing of Extension Notifications - timelines viz 20th August 2017 for July, 2017 and 20th September, 2017 for August 2017 prescribed under the GSTR Notifications as last dates for filing returns of GSTR 3B - quashing the GSTR 3B Notification - declaring the Composition Orders (Order No.0l/2017-GST dt. 21st July and Order No.F.17 (131) ACCT/GST/2017/2258 dt. 21st July, 2017 prescribing the last date as 16th August, 2017 for filing form CMP 01 (for availing composition scheme under section 10 of GST Act, 2017) as arbitrary - act of respondents of making Form CMP 04 - Waiver Notification (Notification No.28 of 2017 dt. 1st September, 2017) - remedy the defect in the GSTN portal - making the form TRAN 1 available on the GSTN portal. Held that - It appears that the system is not working upto the level and the same is required to be corrected updated to meet requirements. It is directed to take following action (i) Whosoever try to log-in to the system, if the same is not responding, assessee or Chartered Accountant/ or Tax Practitioner will inform immediately by email to the District Information Officer of the concerned District, appointed by Central/State Government; (ii) Address of the each District Head will be provided. Mr. R.B. Mathur will provide the address of the State Officer and Mr. Sharma and Mr. Ranka will supply address of the Officer of the Central Government; and (iii) Those who inform so by email, their problem will be resolved expeditiously. In the meantime, no coercive action (penal interest, late fees and prosecution) against any of the client of the petitioners members who are referred in the petition and are informing by email, will be protected. The composition Scheme is extended upto 30.9.2017, therefore, desirous assessee can apply. Petition disposed off.

Issues Involved:
1. Timelines for filing GST returns under Extension Notifications
2. Technical glitches on GSTN portal affecting statutory compliances
3. Composition scheme under GST Act, 2017
4. Requirement of filing HSN details in Form TRAN 1
5. Refund of late payment fees under Waiver Notification
6. Calculation of interest or penalty on non-compliance
7. Editing core registration details and GSTR 3B particulars on GSTN portal
8. Delay in availability of Form TRAN 1 on GSTN portal

Analysis:

Timelines for filing GST returns under Extension Notifications:
The petitioner sought relief declaring the timelines prescribed under the Extension Notifications as arbitrary due to glitches on the GSTN portal. The court directed immediate solutions for non-responsive systems and protected clients from coercive actions until resolution. The composition scheme was extended, and applications accepted retroactively.

Technical glitches on GSTN portal affecting statutory compliances:
The court acknowledged system issues affecting compliance and directed prompt resolution through email notifications to designated officers. Coercive actions were temporarily suspended, and late filings due to system failures were not attributed to the assessee during a specified period.

Composition scheme under GST Act, 2017:
Challenges with availing the composition scheme and opting out were addressed, with directions given to rectify defects on the GSTN portal. The court emphasized the need for adequate time for assesses to exercise their statutory rights under the scheme.

Requirement of filing HSN details in Form TRAN 1:
The petitioner challenged the requirement for filing HSN details for assesses with turnover less than a specified amount as arbitrary. The court directed the respondents to provide a separate form or provision to comply with the notification effectively.

Refund of late payment fees under Waiver Notification:
The court deemed the Waiver Notification discriminatory for not refunding late fees paid before its issuance. Directions were given to refund late fees paid for specific periods, ensuring fairness and compliance with the law.

Calculation of interest or penalty on non-compliance:
Until system glitches were rectified, the court directed that no interest or penalty be levied on assesses for non-compliance with prescribed timelines under relevant Acts. This measure aimed to mitigate undue financial burdens on assesses due to technical issues.

Editing core registration details and GSTR 3B particulars on GSTN portal:
The court ordered remedies for defects on the GSTN portal, enabling assesses to retrospectively edit core registration details and amend GSTR 3B particulars before filing returns. This directive aimed to facilitate accurate and timely submissions.

Delay in availability of Form TRAN 1 on GSTN portal:
The petitioner challenged the delayed availability of Form TRAN 1 on the GSTN portal, citing non-conformity with relevant rules. The court directed the respondents to extend the filing date suitably, ensuring assesses had adequate time to comply with requirements.

This judgment addressed various issues arising from technical challenges on the GSTN portal, providing directions to safeguard assesses' rights, ensure compliance with statutory requirements, and rectify system deficiencies to facilitate smoother operations under the GST regime.

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