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GST - Sections 39(10), 49(11), 50 of the CGST Act, 2017 – Delay in filing of GSTR-3B - Deposit of tax in Electronic Cash Ledger - Issue of recovery notice for demand of interest for delayed filing of Form GSTR-3B – Due to technical glitches in filing of TRAN-1 the entire amount of Transitional Credit did not reflect in the Electronic Credit Ledger of the petitioner-assessee – though the petitioner could not file the monthly return in Form GSTR-3B within the due date but discharged GST liability by depositing the tax amounts in the Electronic Cash Ledger - whether the petitioner is liable to pay interest under Section 50 of the CGST Act, 2017 on the GST amount deposited into the Electronic Cash Ledger within the due date – it is the case of the Department is that the deposit of tax in Electronic Cash Ledger would not amount to payment of tax and would tantamount to failure to remit GST in time, for which interest liability would be attracted – HELD - in the monthly returns in Form GSTR-3B, it is mandatory to provide the details about the tax paid, which means that prior to filing Form GSTR-3B, the tax should have been paid by the registered person as provided in Section 39(1) of the CGST Act. That is why details of the payment of tax is required to be furnished in Form GST PMT-06 irrespective of time of filing the GSTR-3B, whether it is before or after the due date for filing the returns – In terms of Section 39(7) of the CGST Act the last date for payment of tax would be the date not later than the last date on which registered person is required to furnish the monthly return. Thus, for payment of tax filing the monthly returns is not the matter but the last date for furnishing the monthly return is important - Further, Section 39(7) of the CGST Act states that the tax should have been paid to the Govt before the last date for filing the GSTR-3B Returns, which means the instance of payment of tax would occur not later than the last date of filing of GSTR-3B. Thus, it is immaterial whether GSTR-3B is filed within due date or not for remittance of tax to the account of Government - In view of the above, it is incorrect to state that the instance of payment of tax would occur only upon the filing of GSTR-3B return and thereafter by debiting the electronic credit ledger or electronic cash ledger. The assessees have been maintaining said ledgers, only for the purpose of accounting, while, the entire tax to be paid to the Government directly by using the Form GST PMT-06 not later than the last date for filing the Form GSTR-3B - Whenever the GST has been paid by using Form GST PMT-06, the tax liability will be discharged to that extent - the filing of GSTR-3B ensures the complete discharge of GST liability by the registered person through the accounting entries in the respective ledgers, it does not mean that only when the GSTR-3B is filed, the Government can utilise the GST collection made by the registered person - the submissions of Revenue that the GST can be paid only after filing the GSTR-3B, is against the provisions of Sections 39(1), 39(7) and Explanation (9) to Section 49(11) of the Act – in the present case, since the GST amount has been paid by generating GST PMT-06 before the due date without any delay and if any amount is deposited after due date, for the said amount alone, the payment of interest would arise in terms of provisions of Section 50(1) of the Act – The impugned order is set aside and the writ petition is allowed - Differed with Judgement of Jharkhand High Court rendered in RSB Transmission case and judgement rendered by Telangana High Court in Megha Engineering case and followed the law laid down by the Gujarat High Court in the Vishnu Aroma Pouching case – HELD - for the payment of tax to the account of Government, the filing of GSTR-3B is immaterial, which means either with or without filing of monthly returns, the tax can be remitted to the Government. Therefore, no interpretation can be made as held in the judgement of the Hon'ble Division Bench of Jharkhand High Court rendered in RSB Transmission case stating that no payment of tax can be made until the filing of GSTR-3B, which is against the provisions of Section 39(1) and 39(7) of the Act and thus, the said finding would render a disastrous consequences in utilisation of GST collections by the exchequers - Merely, for the default on the part of a registered person in filing the GSTR-3B, the utilisation of tax amount, which was already deposited into the account of Government, cannot be postponed – Further, Section 50(1) of the CGST Act states that cash should have been paid to the Government within the prescribed period, which is 20th day of every month in terms of Section 39(7) of the Act. The said prescribed period is the only time limit provided under Section 50(1) of the Act. However, the said proviso was also interpreted otherwise in the judgement rendered in RSB Transmission case by the Hon'ble Division Bench of the Jharkhand High Court, which is not permissible since the same is beyond the scope of the provision of Section 50(1) of the Act - the law laid down by the Hon'ble Division Bench of the Jharkhand High Court in RSB Transmission case and the judgement rendered by Telangana High Court in Megha Engineering case are not in line with the provisions of the Act and Rules made thereunder and hence, this Court is unable to follow the same - in the judgement of Vishnu Aroma Pouching Private Limited, the Gujarat High Court had taken a view, which is similar to the view of this Court - Meaning of term ‘Prescribed period’ under the provisions of Section 50(1) of the CGST Act – HELD - The provisions of Section 39(7) of the Act states that the tax shall be paid to the Govt not later than the last date, on which he required to furnish the monthly returns in terms of Section 39(7) of the Act, otherwise, the tax has to be paid along with interest in terms of the provisions of Section 50(1) of the Act. Thus, the prescribed date mentioned in Section 50(1) of the Act refers to the last date for payment of GST in terms of the provisions of Section 39(7) of the Act - Rules 87(6) and 87(7) of the CGST Act, 2017 – Purpose of Electronic Cash Ledger – HELD - The respondent's contention was that as long as the amount is available to the credit of Electronic Cash Ledger, the tax amount would be retained until the suitable debit entries are made by filing GSTR-3B. If it is so, then why should Section 54(12) of the Act deal with the refund with interest for getting back the excess amount of tax paid by a registered person' Therefore, Electronic Cash Ledger is maintained only for the accounting purpose and ultimately to determine the final tax liability and to verify the payment of said tax liability within the time prescribed under the Act and Rules made thereunder - Once the amount is paid by generating GST PMT-06, the said amount will be initially credited to the account of the Government immediately upon deposit, at which point, the tax liability of a registered person will be discharged to the extent of the deposit made to the Government. Thereafter, for the purpose of accounting only, it will be deemed to be credited to the ECL as stated in the Explanation (a) to Section 49(11) of the Act.
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