Writ petition for payment of interest on belated GST liability which is paid in Cash, admitted – Honorable High Court of Madras

Petition has been filed before Honorable High Court of Madras in case of Sherisha Technologies (P.) Ltd.

Fact of the case:

The petitioner is registered under GST and filed GST returns belatedly. Petitioner submitted, that interest should not be paid on that part of belated GST liability which was deposited through utilizing Input tax credit as department was always having the funds in the form of ITC.

Applicable provision of the law:

Earlier there were doubts in the law regarding payment of interest liability on Gross GST liability or net liability, however, with the insertion of proviso in section 50, it has clarified that interest shall be paid on that part of belated GST liability which has been deposited in cash. The Court assumed that the amendment in law is just clarificatory in nature and will be applicable retrospectively.

Conclusion:

The writ petition of the Petitioner has been admitted by court.

Source: 114 Taxmann.com 447(Madras)