2018 (12) TMI 345 - HC - GST

Due date of payment of tax under GST - last date off filing of return - Requirement of filing of GSTR-3 return in addition to GSTR-3B return - Validity of Circular No.07/07/2017-GST File No.349/164/2017-GST dated 01.09.2017 - Vires of Section 39 of the Central Goods & Services Tax Act 2017 and Rule 61(5) of the Central Goods and Services Tax Rules 2017 - Respondent has drawn our attention to the counter affidavit filed on behalf of the Commissioner of Central Tax GST Delhi-East wherein it has been stated that the return filed in Form GSTR-3B is not in addition to the return in Form GSTR-3 - Counsel for the respondents has stated that notifications have been issued by the Commissioner as per which the assessee are required to file returns in Form GSTR-3B till 31st March 2019. Till then returns are not required to be filled under Form GSTR-3. Held that - Respondents would file an affidavit meeting the said contentions within four weeks from today. Rejoinder thereto if any may be filed within four weeks thereafter - Re-list on 12th February 2019.

Summary

Issues:
Challenge to the validity of Circular No.07/07/2017-GST and Rule 61(5) of the Central Goods and Services Tax Rules, 2017.

Analysis:
The petitioner, a firm of Chartered Accountants, filed a writ petition challenging the Circular No.07/07/2017-GST and Rule 61(5) of the CGST Rules, 2017. The focus of the challenge was on the Circular being violative of Section 39 of the Central Goods & Services Tax Act, 2017, and Rule 61(5) of the Rules. The respondent's counsel clarified that Form GSTR-3B, not GSTR-3, is to be filed when the Commissioner specifies it under Rule 61(5). Notifications were issued requiring filing in Form GSTR-3B until 31st March, 2019, relieving the need for GSTR-3. However, the petitioner argued that the requirement to compute and deposit tax before the due date for filing the return, as per Notification No.23 of 2017-Central Tax, was contrary to Section 39(7) which mandates paying tax as per the return by the last filing date. The petitioner also contended that Rule 61(5) allowing the Commissioner to specify the manner of filing GSTR-3B was an excessive delegation beyond the legislative mandate of Section 39 of the Act.

The respondents agreed to file an affidavit addressing the contentions raised by the petitioner within four weeks, and any rejoinder was to be filed within four weeks thereafter. The case was scheduled for re-listing on 12th February, 2019, with the order being issued dasti under the signature of the Court Master.