No Late fees to be charged if returns not filed due to cancellation of GST registration, which was restored subsequently

Last updated: 27 January 2023

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The Calcutta High Court has ruled that businesses should not be charged late fees for failing to file GST returns if the non-filing was due to their GST registration being cancelled on incorrect grounds. The court found that demanding late fees in such cases is unlawful, especially when the registration was later restored. The Revenue Department has been directed to assist businesses in filing their returns without incurring these late fees.

Court :
Calcutta High Court

Brief :
The Hon'ble Calcutta High Court in M/s. Modicum Enterprise (OPC) Private Limited v. Deputy Commissioner of State Tax/Assistant Commissioner of State Tax [M.A.T No. 1828 of 2022 with I.A. No. CAN 1 of 2022 dated December 22, 2022] has held that the assessee cannot be penalised by demanding late fee under Section 47 of the Central Goods and Services Tax Act, 2017 ("the CGST Act") where, the assessee had not filed returns due to the cancellation of its Goods and Services Tax ("GST") Registration on the factually incorrect grounds.Further held that, the demand of late fee from the assessee is without jurisdiction and not tenable in the eye of law. Directed the Revenue Department to facilitate the process of filing of return, without the payment of late fee.

Citation :
M.A.T No. 1828 of 2022 with I.A. No. CAN 1 of 2022 dated December 22, 2022

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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