The Punjab and Haryana High Court has clarified that Goods and Service Tax Tribunal (GST Tribunal) will handle all disputes regarding interest on GST and their appeal.
The petitioner (Bhagat Cars Pvt Ltd) from September 2018- March 2019, had purchased motor vehicles on payment of GST. At the end of every month, the petitioner was having more ITC than output tax payable on the sale of motor vehicles. However, due to the delay in the reconciliation of sale discount claim figures with the manufacturer of vehicles, the petitioner failed to file a monthly return by the due date. The respondent by the impugned order has demanded interest on the entire output tax even though nothing was payable or paid from cash credit ledger.
The petitioner filed the writ petition on seeking a declaration that interest cannot be demanded on the ground of delay in filing return when more ITC than output liability was available at the end of the said tax period.
The division bench comprising of Justice Ajay Tewari and Avineesh Jhingan made the clarification on dealing with the disputes related to interest on GST and their appeal
The court clarified that all the disputes related to interest on GST and their appeal will be handled by GST Tribunal and directs commercial tax officer to supply a copy to the petitioner and to approach the Tribunal.
