2020 (8) TMI 775 - HC - GST

Interest on ITC set off - petition has filed the returns for the financial year 2017-18, 20018-19 and 2019-20 at belated stage and availed Input Tax Credit at the time of filing GSTR-3B returns, as Works Contractor - HELD THAT - This Court disposes of this Writ Petition with a direction to the Superintendent, Central GST and Central Excise, Berhampur opposite party No.3 to dispose of the representation filed by the petitioner on 06.05.2020 under Annexure 3 keeping in view the decision taken in the 39th meeting of GST Council, as expeditiously as possible, preferably within a period of eight weeks from the date of receipt of this order. The decision taken, if any, be communicated to the petitioner.

Summary

Issues:
1. Demand of interest under Section 50(1) of the CGST Act, 2017 on Input Tax Credit availed by the petitioner.
2. Interpretation of the decision taken in the 39th meeting of GST Council regarding charging interest on Net Cash Tax Liability.

Analysis:
1. The petitioner, registered under Central Goods and Service Tax, filed returns for three financial years at a belated stage and availed Input Tax Credit while filing GSTR-3B returns as a Works Contractor. The Superintendent demanded interest for the three financial years amounting to ?2,24,487 under Section 50(1) of the CGST Act, 2017, stating that interest is payable on ITC set off. The petitioner contended that as per the decision in the 39th meeting of GST Council, interest for delay in payment of GST should be charged on Net Cash Tax Liability retrospectively from 01.07.2017, not on Input Tax Credit. A representation was submitted to the Superintendent requesting not to charge interest on availed ITC, but no action was taken. The Court disposed of the Writ Petition directing the Superintendent to consider the representation in line with the GST Council's decision, preferably within eight weeks, and communicate the decision to the petitioner.

2. The Court emphasized the need for expeditious disposal of the petitioner's representation in light of the decision taken in the 39th meeting of GST Council. The Court's direction to the Superintendent to consider the representation and communicate the decision within a stipulated timeframe reflects the importance of adhering to the decisions and guidelines set forth by the GST Council. Additionally, the Court acknowledged the impact of the COVID-19 lockdown period and allowed the petitioner to utilize the soft copy of the order from the High Court's website, ensuring accessibility and compliance during the challenging circumstances posed by the pandemic. This judgment underscores the significance of aligning administrative actions with the decisions and directives issued by relevant regulatory bodies like the GST Council, promoting consistency and adherence to established norms in tax matters.