The Kerala High court has filed a petition challenging the glitches in the GST system along with the non-acceptance of the return without payment of the tax amount, causing various losses to the taxpayer along with the late fee payment, interest, and the cancellation of the GST enrollment and others.
While admitting the application, Justice T R Ravi mentioned that the department to open the GST site for the applicants to carry on with the trading activities. The grievance of the applicant was that there was no choice upon the GST to furnish the return without any payment. When the choice was there then the applicant can furnish the return and furnish the tax amount including the interest as permissible beneath GST compliance.
The applicant, Apco Automobiles Private Limited, is an authorized dealer for TATA Automobiles and spare parts. The applicant is not satisfied with the order for the cancellation of GST Registration on basis of non-filing of return.
Sec. 29(2) of the Central Goods and Services Tax Act issue towards the cancellation of the enrollment held by the taxpayer for the failure to furnish the returns for several provisions of the act.
Sec. 47 of the GST Act imposes the levy of a late fee of Rs 100 per day towards the failure to furnish the returns in Form 38 or 28 in the mentioned time beneath the act in which the tax payable post to set the input credit and others with respect to the output tax liability.
Section 50 specified that the levy of the interest on the late payment of the tax that covers the tax subjected to pay under the return furnished beneath the act on the outward supplies at rates not more than 18%.
The applicant mentioned that when the GST functionality was calculated and the GST portal made for the act and rules, the late filing returns and late tax-paying varied and separate offenses with distinct penalties. GST site mentioned that system shall not accept the returns until the taxes payable as per the returns prepared are paid, which results in several penalties on the taxpayer along with the late fee, interest, and the cancellation of the enrollment.
There shall be a direction to the 3rd or 4th respondent to open the GST site so as to enable the applicants to carry on their trading activities for the stocks posed by them during the passing of Ext.P3 order for a duration of 2 weeks from today. Respondents might draw the case of the interim order if so notified. Advocates Mr. P.Raghunathan and Mr. Premjit Nagendran emerged for the applicant.
