Prasanna Kumar Bisoi Vs Union of India (Orissa High Court)
In a recent ruling passed by Hon’ble Orissa high court, held that w.r.t. interest liability for delayed payment of GST under Section 50(1) of the CGST Act, 2017, is required to be paid on net cash tax liability in view of the decision taken by the GST council in its 39th Meeting held on 14 March 2020. The summary of the case is enumerated herein below:
Facts of the case:
- The grievance of the petitioner in this Writ Petition was that he is registered under Central Goods and Service Tax. He had filed the GST returns for the financial year 2017-18, 20018-19 and 2019-20 at a belated stage and availed Input Tax Credit at the time of filing GSTR-3B returns, as Works Contractor.
- The Superintendent, Central GST and Central Excise, Berhampur (“Respondent no. 3) demanded interest under Section 50 (1) of the CGST Act, 2017 in respect of the above three financial years on the head that demand of interest is payable on ITC set off.
- The Learned counsel for the petitioner submitted that in the 39th meeting of the GST Council held on 14 March 2020, it was decided that interest for delay in payment of GST is to be charged on the Net Cash Tax Liability w.e.f. 01.07.2017 retrospectively but not in the Input Tax Credit.
- The Learned counsel further submitted that the petitioner has filed a representation before the Respondent no. 3 with a prayer not to charge the interest on the availed Input Tax Credit and to drop the proceeding in view of the decision taken in the 39th meeting of GST Council. However, no action was taken till date.
Hon’ble Orissa High Court decision:
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