No input tax credit if GST returns not filed,; and Interest payable on gross GST liability; says High Court of Telangana—
In the case of M/s.Megha Engineering & Infrastructures Ltd. (Writ Petition Number 44517 of 2018), the High Court of Telangana has ruled that no input tax credit (ITC) is available unless GST returns are filed and a taxpayer is liable to pay penalty on the entire liability. Accordingly, the court held that interest was payable on the gross amount of the goods and services tax (GST) liability.
“In other words until a return is filed as self-assessed, no entitlement to credit and no actual entry in the electronic credit ledger takes place. As a consequence, no payment can be made from out of such a credit entry,” Justices V Ramasubramanian and P Keshava Rao. “…….the claim made by the respondents for interest on the ITC portion of the tax cannot be found fault with. Hence, the Writ Petition is dismissed,” the court said.
Because of the taxpayer‘s delay in filing the return in this instance, the payment of the tax liability—partly in cash and partly in the form of a claimed input tax credit—was made beyond the period prescribed, and thus the liability to pay interest on the gross amount arose automatically. The taxpayer was thus liable for interest on the gross GST liability.
- Delhi South CGST unearths fake invoicing racket involving tax evasion of Rs. 17 crore, 2 held
- APEDA organizes Global Millets (Shree Anna) Conference
- Customs, Excise and Service Tax Appellate Tribunal (CESTAT) to commemorate 40 years of glorious and successful journey tomorrow
- How To Make Stock Statement for GST Notice or GST Assessment in Excel
- Tariff Notification No. 14/2023-CUSTOMS (N.T.) in respect of Fixation of Tariff Value for Edible Oils, Brass Scrap, Areca Nut, Gold and Silve
- Banking
- Budget & Finance Act
- Business & Industry
- busy
- Central Tax Notification
- Central Tax Rate Notification
- Companies Article & Updates
- Companies Court Case
- Companies law & Act
- Companies law notification
- Company
- Compensation Cess Notification
- COURSE OFFER
- Custom Act
- Custom Notification
- Custom Press Release
- CUSTOMS
- E-Way Bill
- GST
- GST
- GST Article & updates
- GST Circular
- GST court case law
- GST Practitioner
- GST Press release
- GST Return
- GST Rules & Act
- IGST UTGST/SGST Notification
- Import & Export
- Income tax
- Income Tax Act
- Income Tax case law
- Income Tax Circular
- Income tax notifications
- Income Tax Press Release
- Income Tax Return & Audit
- Income Tax Updates & Articles
- MCA Press Release
- Ministry of Finance
- msme
- Others
- RBI Notification
- RBI Press Release
- Tally & Busy Notes
- TDS & TCS
- Uncategorized
- Wages Act
-
CMA Data Specialist ( Online Course )Product on sale₹1,239
-
Import & Export Specialist ( Pen Drive Course )Product on sale₹11,800
-
Import & export ( new online course )Product on sale₹2,360
-
Tax Audit Specialist ( Online Course)Product on sale₹1,770
-
Custom Broker Exam PreparationProduct on sale₹11,799
-
GST Refund Specialist ( Online Course )Product on sale₹1,770
-
Busy Accounting Software ( Pen Drive Course )Product on sale₹9,439
-
Compu Tax ( Pen Drive Course )Product on sale₹7,080
-
Tally Prime ( Pen Drive Course )Product on sale₹8,260