TMI BlogINTEREST LIABILITYX X X X Extracts X X X X X X X X Extracts X X X X ..... INTEREST LIABILITY X X X X Extracts X X X X X X X X Extracts X X X X ..... is paid to the Government (both Central and State) under the appropriate heads such as CGST, SGST, IGST, etc., through the treasury challans in Form PMT-06 with in due time i.e. 20/09/2020. After that the taxpayer had paid the tax through DRC-03 by debiting electronic cash ledger. Whether interest would be payable if the amount equal to the tax due is available in the electronic cash ledger (ECL) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Reply By KASTURI SETHI: The Reply: What is the date of Form GST DRC-03 ? Reply By BARUN MUKHERJEE: The Reply: Sir, Tax was paid through DRC-03 on 13-09-2023. Reply By KASTURI SETHI: The Reply: (i) Interest is payable. (ii) The amount of tax is credited into Govt. Treasury only from the date of offsetting the liability and not prior to that. (iii) Form GST PMT 06 is meant for deposit on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly. It is clear from the heading of PMT 06 format. It does not indicate the date of offsetting liability. (iv) You need to know the difference between Form PMT 06 and Form GST DRC-03 which is easily available on various websites on GST matters. Reply By RaamSrinivasan Kalpathi: The Reply: 2024 (1) TMI 1111 - MADRAS HIGH COURT - M/S. EICHER MOTORS LIMITED The High Court in Eicher Motors Limited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. Superintendent of GST and Central Excise was of the view that it is not correct to state that the instance of payment of tax to the Government would occur only upon the filing of GSTR-3B return and thereafter by debiting the ECL or electronic credit ledger. According to the Court, from the moment the amount is deposited by generating GST PMT-06, it is the money of the exchequers, since the mon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ey was collected only under the name of the exchequer in the form of GST. The Court noted that once the amount is paid by GST PMT-06, the said amount will be initially credited to the account of the Government immediately and the tax liability of a registered person will be discharged to that extent, and that it is only thereafter, for the purpose of accounting only, it will be deemed to be credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted to the ECL, as stated in Explanation (a) to Section 49(11) of the CGST Act. Considering provisions of Sections 39(1), 39(7) and Explanation (a) to Section 49(11) along with Form GST PMT-06, Form GSTR-3 and Form GSTR-3B, the Court noted that payment of tax will always be made not later than the last date for filing the GSTR-3 or GSTR-3B monthly returns. The Court also held that the submission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Department that no tax amount will be passed on to the Government until filing of GSTR-3B would be contrary to Section 54(12) read with 39(7). Allowing the writ petitions, the Madras High Court differed with the views of the Jharkhand High Court's decision in RSB Transmission (India) Ltd. v. Union of India - 2022 (11) TMI 483 - JHARKHAND HIGH COURT and the Telangana High Court decision in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Megha Engineering and Infrastructures Limited v. CCT - 2019 (4) TMI 1319 - TELANGANA AND ANDHRA PRADESH HIGH COURT. Dear Querist Kindly check the above and see if this helps. Thanks Reply By KASTURI SETHI: The Reply: The issue is not litigation-free. Reply By KASTURI SETHI: The Reply: Whenever there is a difference of opinion among High Courts, it is natural that the matter will travel to H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on'ble Supreme Court. Reply By BARUN MUKHERJEE: The Reply: Thank u very much honorable experts.. Reply By Shilpi Jain: The Reply: Interest should not be applicable from the date of credit in cash ledger as such amount paid is as good as tax paid to Government. Have a look at the following cases as well. 2024 2 TMI 125 HC - GST 2024 7 TMI 239 HC GST - Arya Cotton Industries Vs UoI 2017 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (11) TMI 1429 - SUPREME COURT - MODIPON LTD. X X X X Extracts X X X X X X X X Extracts X X X X
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