Home GST Kerala HC Upholds Penalty for Failure to Deposit GST Collected Within 30 Days of Notice, Even Tax Has Been Paid

Kerala HC Upholds Penalty for Failure to Deposit GST Collected Within 30 Days of Notice, Even Tax Has Been Paid

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Kerala HC Upholds Penalty for Failure to Deposit GST Collected Within 30 Days of Notice, Even Tax Has Been Paid
Kerala HC's Order for M/s. Global Plasto Wares

The writ petition is been dismissed by the Hon’ble Kerala Excessive Courtroom within the case of M/s. International Plasto Wares v. Assistant State Tax Officer [WP (C) No. 33787 of 2023 dated October 17, 2023] and acknowledged that the taxpayer is obligated to file the penalty when the GST collected quantity doesn’t get credited to the federal government even when the GST, in addition to the curiosity, has been filed inside 30 days of the discover offered for asking the demand associated to the GST non-payment.

Factors:

Income Division (“the respondent”) has issued a present trigger discover to M/s. International Plasto Wares (“the Petitioner”) asking for the GST cost. The GST quantity has been paid by the petitioner that has been requested with the curiosity vide FORM GST DRC-03 receipt dated March 10, 2022. The Petitioner has furnished a Discover on Could 11, 2023 (“the Discover”), for cost of the quantity of penalty.

The applicant vide Order on 14th September 2023 (“the Impugned Order”) asking for the penalty quantity to get filed by way of the applicant below Part 73(9) learn with Part 73(11) of the Central Items and Providers Tax Act, 2017 (“the CGST Act”) and Part 20(xxv) of the Built-in Items and Providers Tax Act, 2017 (“the IGST Act“). Dissatisfied with the Impugned Order, the applicant has filed a writ petition earlier than the Hon’ble Kerala Excessive Courtroom.

The GST has been filed by the applicant inside 30 days from the date of discover the applicant argued. As per Part 73(8) of the CGST Act no penalty is liable to be paid, the applicant talked about and the discover is taken into account to be concluded within the circumstances the place the taxpayer below Part 73(1) or Part 73(3) of the CGST Act, has filed the GST that has been requested together with curiosity inside 30 days from the discover issuance date.

Learn Additionally: Kerala Excessive Courtroom Cancels Order Resulting from Violation of Part 75(4) of CGST Act

Part 73(11) of the CGST Act shall subjected to be utilized within the present case the respondent argued because the applicant has collected the GST from the receiver however doesn’t credit score the identical to the Authorities and therefore below Part 73(9) of the CGST Act the applicant is obligated to file the penalty.

Case:

Whether or not the taxpayer obligated to file the penalty if the GST quantity collected doesn’t get credited to the Authorities regardless of if the GST in addition to the curiosity get filed inside 30 days of the discover issuance?

Had:

The Hon’ble Kerala Excessive Courtroom within the case of WP(C) No. 33787 of 2023 acknowledged:

  • Sees that the key drawback that emerges to the court docket is that if the applicant is obligated to file the penalty when the applicant has beforehand filed the GST quantity together with the curiosity inside 30 days of acquiring the discover.
  • Based mostly on not crediting the GST quantity obtained by way of the provider from the receiver to the federal government the demand raised for the cost of GST.
  • In keeping with sub-sections 6,8 and 9 of Part 73 of the CGST Act, the applicant is obligated to file the penalty quantity a the quantity of GST collected by way of the applicant doesn’t get deposited with the federal government inside thirty days from the final date of GST cost.
  • The respondent has obtained the proper view and no error of the legislation has been carried out that wants the interference of the court docket. Subsequently the writ petition is dismissed.

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