- The Kerala High Court allowed a writ petition filed by M/s. Hilton Garden Inn.
- The court held that it is unfair to impose interest when the delay in remitting tax is caused by technical issues on the GST Portal.
- The petitioner had faced technical problems in remitting the GST amount, which resulted in the amount not reflecting in the cash ledger.
- The petitioner’s GST registration was canceled, but they filed an application to reactivate it.
- The court had previously directed the respondent to restore the petitioner’s registration or provide an alternative GST registration.
- The petitioner filed the return with a delay, and while no penalty was imposed, interest was levied for the delay in remitting the tax.
- The petitioner filed a writ petition challenging the demand for interest, arguing that it was unjustified.
- The court held that the petitioner could not have remitted the tax without a valid GSTIN, so it is unfair to impose interest.
- The court set aside the impugned order and granted liberty to impose a penalty for the delay in payment.
Source: a2ztaxcorp.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
