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GST – Section 50 of the CGST Act, 2017 - Interest on delayed payment of tax, Deposit in Electronic Cash Ledger, Date of payment – Petitioner filed GSTR-3B returns within the extended period of limitation and paid the applicable taxes along with interest at 18% p.a. as per Section 50 of the CGST Act, 2017 - Revenue authorities later demanded further interest on the grounds that the amount was not paid on the due date and was debited from the Electronic Cash Ledger only at the time of filing the Returns - Whether the petitioner company is liable to pay interest from the date of deposit in the Electronic Cash Ledger till the date of filing of the Return – HELD - As per the provisions of the GST Act, the amount deposited in the Electronic Cash Ledger is required to be considered as a payment of tax which gets adjusted at the time of filing of the Return by debit in the Electronic Cash Ledger. Therefore, the question of payment of interest would not arise for the period from the date of deposit of the amount in the Electronic Cash Ledger by the petitioner till the date of filing of the return – As per the scheme of the GST Act, it is only for the purpose of accounting that the debit in Electronic Cash Ledger will be made at the time of filing of the return otherwise an amount which is credited to the account of the Government immediately upon the deposit in electronic cash ledger, the same would be appropriated in the Government treasury and the tax liability of the assessee would stand discharged - In the case of Arya Cotton Industries, it was held that once the amount is credited in the Electronic Cash Ledger, the assessee cannot be saddled with the interest liability from the date of deposit till the date of filing of the Return, as the tax amount along with interest has already been credited to the Government account – Further, the deposit in Electronic Cash Ledger would be in the nature of advance payment by the assessee which would be adjusted at the time of filing of the return in Form GSTR 3B while computing the tax liability. Therefore, no interest can be levied from the date of deposit of the amount by the assessee in the electronic cash ledger till the time the return in Form GSTR-3B is submitted - The impugned communications demanding interest from the petitioner are set aside and the petition is allowed
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