From the decision of the court, the GST council would recover the interest accrued on non-payment of GST because of the mismatch in the invoices excluding providing any notice.
In the existing concern Bharti Airtel, the Punjab & Haryana High Court raises a stay order to recover the interest accrued to boost Rs 5.77 crore upon the late payment of tax because of the mismatch.
Direct recovery relies on that the tax council does not need to provide the notices. The head might recover the amount via different modes like deducting the money owned to taxpayers for example the ITC or they could seize their goods and sold them later.
Rs 29.88 cr difference has been revealed in the liabilities by tax council as mentioned in the sales return GSTR-1 and summary input-output returns GSTR-3B — for the financial year 2017-18 by Bharti Digital Networks Private Ltd, now merged with Bharti Airtel.
On the investigation of the online records, Bharti Digital furnish the tax and declared the same in GSTR-3B for December 2018 furnished in January 2019.
As there was a payment delay of Rs 392 days of the tax council seeks to recover the interest that stands at Rs 5.77 cr. the council provided that summons to the company. The company challenged the proceedings in the high court and the court has ordered an interim stay upon the proceedings.
After the submission of the answers and the further proceedings, the court has raised the stay order on the proceedings to recover interest via its order on December 16.
Airtel furnished the amount with the tax council date Jan 17 the council mentioned. Even as airtel has furnished the amount the same discussion does not permit the GST council to directly recover the interest on the condition that the tax has not been furnished within time because of the mismatches in the invoices.
The law section 79 of the Central Goods and Services Tax (CGST) Act gives the authority to the officers to recover the left GST via means of the method as mentioned above. As per the legal provision inside the GST laws, the council without sending the notice has recovered the interest.
From the support of the court, the heads are considering executing that in some of the cases where there is a mismatch of the invoices.
