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Cus - Export of non-basmati rice - Notification 20/2023 insofar as it denies the benefit of the transitional arrangement as contained in para-1.05 of the FTP 2023, is bad in law: HCCus - Refund of SAD - 102/2007-Cus - Areca Nut and Supari are one and the same - Objections with regard to name, nature and status of importer or buyers or the end use of goods purchased by them etc. are extraneous: HCCX - Interest on Refund - Since wrong order annexed by petitioner in paper book, Bench is unable to proceed further - Petition is dismissed with liberty to file a fresh one: HCGST - No E-way bill - When petitioner imports machinery and after Customs clearance, transports same to his own factory, it cannot be said that such a transportation would fall within the definition of term 'supply' - Penalty imposable under second limb of s.129(1)(a): HCGST - Fix responsibility on officers who allowed BG to lapse - Petitioner not justified in not renewing BG - Cost of Rs.15 lacs imposed, to be paid to PM Cares Fund: HCGST - Since the parties agree that petition can be disposed of on the basis of records available before Appellate Authority, petitioner is directed to enclose all documents filed before Appellate Authority in a compilation, in form of a paper book: HCWrong RoadST - Whether any service is used for personal consumption or not is certainly question of fact and being question of fact, no substantial question of law arises: HCGovt proposes to amend Geographical Indication of Goods Rules; Draft issued for feedbackST - If what has been paid as tax is without authority of law, Revenue should refund the same - Denial of credit would result in the whole exercise being tax neutral: HCWarehousing Authority notifies several agri goods to be stored in only registered warehousesST - Even if the petitioner may have a case on merits, it is best left to be decided by the Appellate Authority under the hierarchy prescribed under the FA, 1994: HCUS FDA okays Eli Lilly Alzheimer’s drugGST - Petitioner challenges jurisdiction of assessing officer - Petitioner is entitled to file an appeal u/s 107 by availing an alternate efficacious remedy: HCFive from Telangana killed in car accident on Pune-Solapur HighwayGST - Existence of an alternative remedy is a material consideration but not a bar to the exercise of jurisdiction: HCHush money case against Donald Trump - Sentencing deferred to Sept 18GST - It is open to a trader to take goods by whichever route he opts, unless the law otherwise requires, destination point being intact: HCDeadly hurricane Beryl smashes properties in JamaicaGST - Conclusion that taxable person is providing a service to supplier while taking the benefit of a discount by facilitating an increase in the volume of sales of such supplier is ex facie erroneous and contrary to the fundamental tenets of GST law: HCIsrael claims 900 militants killed in Rafah since May monthGST - Order expressly records that personal hearing notice was returned with endorsement 'no such person at address' - Since petitioner has shifted to a new premises, it is just and necessary to provide an opportunity to contest demand: HC116 die in stampede at UP ’Satsang’I-T- Application for revision of order dismissed in limine on grounds of delay; case remanded for re-consideration: HCWe are deepening economic ties with India, says US officialI-T- As per Section 119(2)(b), power to condone applications relate to claims for amount exceeding Rs 50 lakhs are to be considered by CBDT; however it is impermissible for CBDT to pass order on merits: HC8 Dutch engineers build world’s longest bicycle - 180 feet, 11 inchesI-T- Additions framed u/s 68 for unexplained income & u/s 69 for unexplained expenditure not tenable where complete transactional details are furnished & not doubted: HCRailways earns Rs 14798 Crore from Freight loading in June monthI-T- Delay in filing ITR is per se insufficient reason to estimate assessee's profit @15% on turnover, more so where audited financial report is filed in timely manner: ITATMoD inks MoU to set up testing facilities in Unmanned Aerial System in TN Defence Industrial CorridorI-T- For invoking section 69A, assessee should be found to be owner of any money, bullion, jewellery or other valuable article & which is not recorded in the books of account: ITATGovt proposes Guidelines for ethical approach to Coal MiningI-T- TDS credit can be allowed based on AIS, where details pertaining to TDS, advance tax & other payments are reflected in Form 26AS: ITATVaishnaw to inaugurate Global IndiaAI Summit 2024I-T- Lending money with the primary intention of earning interest can be considered a business activity, but nature and manner of lending, as well as the frequency, should be taken into account: ITAT
 
GST - Payment of Tax & Appropriation in Return

 

DECEMBER 19, 2017

By Lakshmi Ratna Kancherla, Adv.

THE relevant provisions under the Goods and Services Tax law ("GST Law") in the matter of payment of tax and its appropriation are as follows -

- The due date for payment of tax and filing of the return i.e., GSTR-3/GSTR-3B for a particular month is 20th of the following month.

- The registered person has the option of discharging the said liability either by way of "cash" or "credit" under the GST Law.

- Cash Payment: Payment can be made by way of using the challan either electronically or by way of cash in the prescribed manner. Once the CPIN is generated the said amount shall be credited to the cash ledger 1 and can be subsequently used to make payment towards tax, interest, penalty, fees or any other amount subject to the conditions and in the manner in which it is prescribed. 2 It is pertinent to note that at the time of payment of the amount the reason for which it is being paid / the period for which the amount is being paid is not identified in the challan/while being credited to the cash ledger.

- Credit Ledger: In terms of Section 41 of the CGST Act read with Section 49(2) of the CGST Act, the input tax credit as self-assessed in the return of a registered person shall be credited to his electronic credit ledger which shall be available for making any payment towards output tax under the CGST Act/the IGST Act subject to the conditions as may be prescribed 3.

Insofar as "payment of tax" is concerned the amount is deemed to be paid only when the registered person "offsets the liability" in the GST Portal at the time of filing the Return (GSTR-3B) either by credit or cash.

In the event, the GSTR-3B is not filed, the registered person is deemed to have not discharged the liability and the GST Portal auto-calculates the interest only because the tax so paid is not appropriated against the liability by way of filing returns.

This results in a situation where although the tax is paid by the registered person merely because the same is not appropriated against the liability in the Return, interest liability is triggered. This may also result in the recipient not being entitled for ITC.

Press Release No. 97/2017 dated 2.09.2017 issued by the CBEC among others clarified that payment of GST is complete only when the amount of tax payable is debited from the electronic cash/credit ledger. Interestingly, only the late fee for filing the Return had been waived.  

This is a serious lacuna in the law whereby interest is triggered merely due to non-appropriation of the amount although the tax has been paid by the registered person and available with the Government exchequer.

Where the legislature envisages a separate fee for filing the return belatedly and belated payment of the taxes/discharging the liability, the registered person need not again be penalized for non-appropriation of the liability already discharged by way of interest.

The anomaly needs to be sorted by the legislature by creating a deeming fiction or issuing a suitable clarification in this regard.

(The views of the author are strictly personal.)

________________________________________

1. Section 49(2) of the Central Goods and Services Tax Act, 2017 read with Rule 86 of the Central Goods and Service Tax Rules 2017

2. Section 49 (3) of the CGST Act, 2017 read with Rule 87 of the CGST Rules, 2017.

3. Section 49(4) of the CGST Act, 2017 read with Rule 86 of the CGST Rules, 2017.


 RECENT DISCUSSION(S) POST YOUR COMMENTS
   
 
Sub: offsetting the setting of tax

very true.agreed fully.when the tax payer after depositing the same is not eligible to take the benefit for the reasons beyond control or for the reasons due to software or technical reason, then this is not the democracy if u ask him to pay the interest.

Posted by Navin Khandelwal
 

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