2026-VIL-111-BOM
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SGST High Court Cases

GST – Liability to payment of GST absence issue of invoice, Levy of Interest – Petitioner entered into a lease agreement with the Respondent for a plot of land - Respondent upon receiving the request by the petitioner to transfer the land to another party, called upon the petitioners to pay transfer charges and along with the transfer charges to pay outstanding GST with interest - Petitioners challenge the levy of interest on the delayed payment of GST - Whether the Respondent was justified in levying interest on the petitioners for the delayed payment of GST – HELD - As per the provisions of Section 39 of the CGST Act, 2017 and Rule 61 of the CGST Rules, 2017, the responsibility to pay GST within the prescribed time frame was upon the respondent, the service provider. Further, as per Rule 46 and Rule 47 of the CGST Rules, the respondent was duty-bound to issue the tax invoice within 30 days from the date of supply of service. However, the respondent failed to issue the invoice - The expectation of Respondent-service provider that the petitioners-service recipient should have paid the GST voluntarily as per the lease agreement is contrary to the provisions of law. The Section 122 of the CGST Act imposes a penalty on the taxable person (respondent) for not issuing a tax invoice, and Section 50 of the CGST Act provides that the interest on delayed payment of tax is to be paid by the person liable to pay the tax (respondent), not the recipient (petitioners) - The respondent is directed to refund the amount recovered from the petitioners towards interest within six weeks, failing which the respondent shall pay interest at 18% per annum from the date the amount was recovered until it is paid to the petitioners. The respondent is at liberty to recover the amount of interest from the erring official – The writ petition is allowed
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