Goods and Services Tax Practitioners’ Association vs Union of India

The case involves a writ petition filed by the Goods and Service Tax Practitioners’ Association, Mumbai, and its President, Shri Raj Pravin Shah, under Articles 226 and 227 of the Indian Constitution. They seek a direction from the court to extend the deadline for filing annual returns in Maharashtra until the complete lifting of the lockdown or until the Covid-19 pandemic situation significantly improves. Additionally, they request an extension of the limitation period for filing annual returns for the year 2019-20 in Maharashtra under section 44 of the Goods and Services Tax (GST) Act.

During the proceedings, Mr. P. C. Joshi represented the petitioners, while Mr. Anil Singh, the learned Additional Solicitor General, appeared on behalf of the respondents. He was accompanied by Mr. P. S. Jetly, learned senior counsel, Mr. J. B. Mishra, and Mr. Devesh Tripathi, learned counsel for respondent Nos. 1 and 3. Ms. Jyoti Chavan, learned AGP, represented respondent No. 2, the State.

The arguments presented revolved around the necessity of extending the deadline for filing annual returns due to the ongoing Covid-19 pandemic and its associated challenges. The petitioners emphasized the adverse impact of the pandemic on businesses and the practical difficulties faced by taxpayers in meeting compliance deadlines. They sought judicial intervention to alleviate these burdens by extending the filing deadlines.

Conversely, the respondents, represented by the Additional Solicitor General and other counsels, likely presented counterarguments regarding the existing legal framework, administrative feasibility, and any potential adverse consequences of extending the deadlines. They might have emphasized the need to balance the interests of taxpayers with the broader objectives of tax administration and compliance.

The court would have examined the arguments from both sides, considering legal precedents, statutory provisions, and the specific circumstances of the case. Factors such as the severity of the pandemic, its impact on economic activities, and the feasibility of alternative compliance measures may have influenced the court’s decision-making process.

Ultimately, the court would have rendered a judgment either granting or denying the relief sought by the petitioners, possibly with certain conditions or modifications to address the concerns raised by the respondents.

The case heard involved the Goods and Service Tax Practitioners’ Association, Mumbai, and its President, Shri. Raj Pravin Shah, filing a writ petition under Articles 226/227 of the Constitution of India. They sought a direction from the respondents to extend the deadline for filing annual returns in the State of Maharashtra until the complete lifting of the lockdown or until the COVID-19 pandemic situation significantly improves. Additionally, they requested an extension of the limitation period for filing annual returns for the year 2019-20 in Maharashtra until June 30, 2021.

Under Section 44 of the Central Goods and Services Tax Act, 2017 (CGST Act), and Rule 80 of the Central Goods and Services Tax Rules, 2017 (CGST Rules), every registered person is obligated to file an annual return for each financial year in electronic form before December 31 following the end of that financial year. For the financial year 2019-20, the original deadline for filing such returns was December 31, 2020, which was extended to February 28, 2021, by notification No.95/2020 dated December 30, 2020.

The petitioners argued that the COVID-19 pandemic, particularly in Maharashtra, is ongoing, with recent increases in cases. Lockdown measures have not been entirely lifted, and some areas have even experienced fresh lockdowns. They further contended that the filing of annual returns is contingent upon the finalization of audit reports under the Income Tax Act, 1961. Although the deadline for finalizing audit reports under the Income Tax Act is typically September 30 of the preceding year, for the financial year 2019-20, it was extended to January 15, 2021. This extension meant that Chartered Accountants responsible for filing annual returns under the CGST Act would have less than 45 days after finalizing the audit reports to file the annual returns under Section 44 of the CGST Act.

Due to these reasons, the petitioners had previously made representations to the authorities for an extension of the filing deadline, but their requests were not granted. Thus, they approached the court seeking relief in the form of an extended deadline for filing annual returns. The case involves a balance between the statutory obligations of taxpayers and the practical challenges posed by the ongoing pandemic and associated lockdown measures.

The case revolves around a writ petition filed by the Goods and Service Tax Practitioners’ Association, Mumbai and its President Shri. Raj Pravin Shah (petitioners) seeking relief under Articles 226 / 227 of the Constitution of India. They request the court to direct the respondents (government authorities) to extend the deadline for filing annual returns in Maharashtra until the complete lifting of the COVID-19 lockdown or until the pandemic situation significantly improves. Additionally, they seek an extension of the deadline for filing annual returns for the financial year 2019-20 under the Central Goods and Services Tax Act, 2017 (CGST Act) until June 30, 2021.

The petitioners argue that as per section 44 of the CGST Act and rule 80 of the Central Goods and Services Tax Rules, 2017, every registered person must file an annual return for each financial year before December 31 of the following year. However, due to the ongoing COVID-19 pandemic, the situation in Maharashtra remains uncertain, with sporadic lockdowns and increasing infection rates. They emphasize that the filing of annual returns is contingent upon the finalization of audit reports under the Income Tax Act, 1961, and note that the deadline for such reports for the financial year 2019-20 was extended until January 15, 2021. Consequently, Chartered Accountants responsible for filing annual returns under the CGST Act would have insufficient time to complete this process.

The petitioners have previously approached the Grievance Redressal Committee and the GST Council, but no decision was reached. Hence, they have resorted to filing this writ petition seeking relief.

Mr. Joshi, counsel for the petitioners, highlights an amendment to section 44 of the Maharashtra Goods and Services Tax Act, 2017, which grants discretionary power to the Commissioner to extend the time-limit for filing annual returns. He argues that such an extension would not result in revenue loss and is necessary to address the genuine hardship faced by the petitioners and other taxable persons. He also refers to section 168A of the Maharashtra Goods and Services Tax Act, 2017, which allows for an extension of time-limit in cases of force majeure, including epidemics like COVID-19.

Mr. Joshi further cites a judgment by the Rajasthan High Court in a similar case, where the court directed that late fees would not be charged for delayed returns until a specified date, highlighting precedent for granting relief in such circumstances.

In summary, the petitioners argue for an extension of the deadline for filing annual returns in Maharashtra due to the ongoing COVID-19 pandemic and the challenges it poses to compliance with statutory requirements. They seek judicial intervention to compel the authorities to exercise discretionary powers granted by law to address this issue.

Download PDF:

For Reference Visit:

Read Another Case Law:

GST Case Law: