The writ applicant is aggrieved by its exclusion from the proviso to Section 50 (1) of the Act which create different treatment between two classes of persons (i) who self assessed payment of tax after duly filing of the tax returns pursuant to the investigation and (ii) who fails to file a return in time and pays tax on account of delayed in filing of return in terms of Section 39 (1) of the CGST Act.
Section 50 of the CGST Act, 2017— Interest –-- The applicant challenged the constitutional validity of the proviso to Section 50 of the Act, 2017. The applicant counsel submitted that proviso to Section 50 (1) allows the benefit of interest on tax payable in respect of the supplies made (i) during a tax period (ii) declared in the return for the said period (iii) and furnished after the due date. The amendment in the form of proviso is in violation of the decision taken by the GST Council in its 31st meeting held on 22.12.2018, wherein, the Council unanimously decided that interest is not payable for the delayed payment of tax through electronic credit ledger. The applicant is aggrieved by the levy of interest on the GST paid by him through the electronic credit ledger on account of short payment of tax.
Held that:- The Hon’ble High Court issued notice to the respondents, returnable on 11.02.2021.
The writ applicant is aggrieved by its exclusion from the proviso to Section 50 (1) of the Act which create different treatment between two classes of persons (i) who self assessed payment of tax after duly filing of the tax returns pursuant to the investigation and (ii) who fails to file a return in time and pays tax on account of delayed in filing of return in terms of Section 39 (1) of the CGST Act.
Section 50 of the CGST Act, 2017— Interest –-- The applicant challenged the constitutional validity of the proviso to Section 50 of the Act, 2017. The applicant counsel submitted that proviso to Section 50 (1) allows the benefit of interest on tax payable in respect of the supplies made (i) during a tax period (ii) declared in the return for the said period (iii) and furnished after the due date. The amendment in the form of proviso is in violation of the decision taken by the GST Council in its 31st meeting held on 22.12.2018, wherein, the Council unanimously decided that interest is not payable for the delayed payment of tax through electronic credit ledger. The applicant is aggrieved by the levy of interest on the GST paid by him through the electronic credit ledger on account of short payment of tax.
Held that:- The Hon’ble High Court issued notice to the respondents, returnable on 11.02.2021.