GST NEWS BULLETIN

Interest is leviable despite the availability of having a balance in cash/credit ledgers if no payment was made in GST

The Hon’ble Madras High Court in M/s India Yamaha Motor Private Limited, v. the Commissioner of CGST & Central Excise [WP.No.19044 of 2019 and WMP.No.18404 of 2019 dated August 29, 2022] has held that in the case where Goods and Services Tax (“GST”) Liability has not been adjusted, interest under Section 50 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) is leviable even if the taxpayer has an adequate credit balance in his cash ledger or credit ledger.

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Expiration of E- way bill and “minor negligence” will not amount to tax evasion

The Hon’ble Madhya Pradesh High Court in M/S Daya Shanker Singh v. State of Madhya Pradesh [Writ Petition No. 12324 of 2022, dated August 10, 2022] directed the assessing authority to refund back the penalty charged from the assessee because of the mere expiration of the E-way bill just by few hours as it did not amount to tax evasion, fraudulent intent or gross negligence.

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No penalty shall be imposed on any person without giving him the opportunity of being heard

The Hon’ble Delhi High Court in Nirmal Kumar Mahaveer Kumar v. Commissioner of Central Goods and Services Tax and Another [W.P. (C) 8585/2022 dated August 23, 2022] directed that the assessee needs to be given another chance to establish, as to why the subject goods did not reach their designated designation before the expiry of the E-way bill.

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