A two-judge bench of the Delhi High Court has stayed proceeding against M/s Landmark Lifestyle for late payment of interest on gross tax liability on Goods and Services Tax ( GST ).
The bench comprising Justice S Muralidhar and Justice Asha Menon was hearing a petition by a Delhi based firm, Landmark Lifestyle.
Before the Court, the counsel for the appellant, Advocate J K Mittal pointed out that the calculation of the interest payable for delayed payment of GST as determined by the Respondent is erroneous. According to him, interest has been calculated even on the amount constituting the input tax credit which is in fact to be adjusted against the tax liability. He stated that on the actual tax liability, interest has been paid by the Petitioner. He further stated that against the total tax liability of Rs.3.31 crores the interest liability works out to 8.19 crores which makes it unreasonable and erroneous.
According to Section-50 of the GST Act, anyone who fails to pay tax in time shall pay 18% interest on the total unpaid tax including the input tax credit from the day after the due date.
While granting an interim relief, the bench said that “Till the next date, no coercive action be taken against the Petitioner for non-payment of the interest amount. 5. List the matter before the Registrar on 5th August, 2019 for completion of pleadings.”
The matter was posted to 30th September 2019.
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