Amendment in GST Section 62(2), the Madras HC Forgives GSTR 3B Return Filing Delay

The Madras High Court in a ruling condoned the delay in GSTR-3B filing via the applicant, directing the amendment to section 62(2) of the Goods and Services Tax (GST) Act. Therefore the issued assessment order u/s 62(1) has been withdrawn by the court.

The applicant, Helmet House filed the GSTR-1 return dated 25th March 2023, post receiving a notice in GSTR-3A on the same date. However the applicant disputed the difference in supply in GSTR-1, they were not able to submit GSTR-3B within the said time. Consequently, an assessment order was issued u/s 62(1) of the Tamil Nadu Goods and Services Tax (TNGST) Act, 2017, dated 22nd May 2023, based on the returns filed in GSTR-1.

The applicant has filed the GSTR-3B return dated 2nd July 2023. As per Section 62 of the GST enactments, if a return has been filed within 30 days, u/s 62 the assessment order is considered withdrawn. The applicant remains obligated for the interest u/s 50(1) and the late fees u/s 47.

The counsel of the applicant claimed that the duration for filing the GSTR-3B has been extended to 60 days w.e.f 1st October 2023, under the Finance Act No. 8/2023, dated 31st March 2023, and Notification No. 28/2023-Central Tax, dated 31st July 2023.

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The respondent’s government advocate argued that the revision did not come into force in the disputed duration and that the applicant had lost their power via not filing a plea within the said time.

The advocate quoted the decision of the Apex court in Singh Enterprises v. Commissioner of Central Excise, Jamshedpur & Others (2008) 3 SCC 70, asserting the dismissal of the writ petition.

The bench of Justice Krishnan Ramasamy determined that the delay in filing GSTR-3B on 2nd July 2023 must be condoned as of the amendment to Section 62(2) of the CGST Act, 2017, which has been incorporated into the TNGST Act, 2017. Therefore, the assessment order issued dated 22nd May 2023 u/s 62(1) is considered withdrawn.

Satheesh Murugan for Mr. K.S.Prakash and J.K.Jayaselan Government Advocate appeared for the assessee and respondents respectively.