M/S. Rsb Transmissions India Limited Vs Union Of India: Electronic Cash Ledger Vs. GSTR-3B: A Taxpayers Misconception...
CA Bhawani Shankar Joshi
Chartered Accountant(NOV 24) || M. COM|| B. COM ||Financial Enthusiastic ||Content Writer || Internal Audit || ||TAX || ||Statutory Audit ||200k+ impressions ??
(1)Introduction....
In this legal matter, the focus is on tax compliance issues between M/S. RSB TRANSMISSIONS INDIA LIMITED and the Union of India. The dispute primarily involves the delay in filing GSTR-3B returns and the imposition of interest charges by tax authorities. RSB contends that the amounts already held in the Electronic Cash Ledger should prevent these interest charges. The tax authorities, however, disagree with this stance.
(2)Background of this case...
RSB TRANSMISSIONS INDIA LIMITED is a registered company under the Companies Act 2013. The company faced delays in filing its GSTR-3B returns for various periods, leading to interest charges of Rs. 13,23,783 imposed by the Revenue Department in July 2021.
To address this, RSB belatedly deposited Rs. 2,32,77,535 in cash and paid an additional Rs. 1,53,260 as interest under Section 50 of the CGST Act in August 2022. However, the department insisted on RSB paying the remaining interest of Rs. 11,72,523.
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(3)Argument ...
RSB is attempting to challenge the department's refusal to approve its refund request of Rs. 11,70,523, which was collected as interest under Section 50 of the CGST Act. The company asserts that this amount was paid to the government before the due date, and they stress the significance of fully understanding this issue.
On the other side, the department contends that there were no technical issues with the GSTR-3B filings for the relevant periods and that RSB failed to timely inform the jurisdictional officer or GSTIN help desk of any problems. They assert that merely depositing money into the Electronic Cash Ledger does not constitute tax payment to the government.
(4)Court ruling...
In its examination of the case, the High Court concluded that RSB was wrong in thinking that the tax liability could be settled by merely depositing funds into the Electronic Cash Ledger. The court explained that the tax obligation is discharged only when the GSTR-3B return is filed before the due date.
RSB had indeed filed the returns late for the mentioned periods, resulting in the rightful imposition of interest by the Revenue Department. RSB had already paid this interest through Form DRC-03, so there was no need for a refund.