Reliance Formulation Private Limited Vs Assistant Commissioner of State Tax (Gujarat High Court)
Gujarat High Court today dismissed a petition filed by Reliance Formulation Private Limited, challenging an advisory issued by the Assistant Commissioner of State Tax concerning the payment of interest on delayed Goods and Services Tax (GST) dues. The court ruled that the advisory, which warned of recovery action under Section 79 of the GST Act, was merely an intimation and not a final recovery proceeding, especially in light of the recently introduced Rule 142B of the GST Rules.
Background of the Case
Reliance Formulation Private Limited, a company specializing in Ayurvedic and herbal products, is registered under the Central/State Goods and Services Tax Act, 2017. The company regularly files its GST returns.
The dispute arose when the petitioner received an advisory dated December 18, 2024, from the Assistant Commissioner of State Tax. This advisory pertained to financial years 2017-18, 2018-19, 2021-22, 2022-23, and 2023-24, urging the company to ensure payment of interest under Section 50(1) of the GST Act. This interest was for self-assessed tax paid after the due date for furnishing returns. The advisory further stated that failure to discharge this interest liability or provide sufficient clarification could lead to recovery action under Section 79 of the GST Act.
