Case Law Details
Malayalam Motors Pvt. Ltd. Vs Assistant State Tax Officer (Kerala High Court)
The High court of Kerala permitted the petitioner to discharge the tax liability, inclusive of any interest and late fee thereon, in equal successive monthly installments.
Please note Section 80 of the CGST Act, 2017 allows payment of tax due (other than the due self-assessed in any return) in monthly installments not exceeding 24 months. GSTR -1 is not a return. In case of temporary financial distress in the erstwhile Central Excise regime Circular No. 996/3/2015-CX, dated 28-2-2015 provided for payment of the tax dues in installments.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
The petitioner is a private limited company engaged in the business of automobile sales. In the writ petition, it is the case of the petitioner that though the Company filed GSTR-1 returns for the months of February, 2020 to May, 2020, due to Covid pandemic, could not generate funds to make lump sum payment of the admitted tax. The Company, however, intends to pay the arrears of tax due without contesting the same. But, the respondent has expressed his inability to permit the petitioner to pay the arrears of tax in instalments. The petitioner reiterates that on account of the present Covid pandemic situation, the petitioner is not in a position to generate the funds necessary for making a lump sum payment of the admitted tax for the said period, and it is therefore that the petitioner seeks a direction from this Court to permit the petitioner to file the returns without paying the entire admitted tax, but ensuring that the payment of admitted tax, together with interest thereon and applicable late fees etc., will be made in quick instalments.
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