Section 50 of the CGST Act, 2017 – Interest – Computation of Interest - The petitioner has been levied interest due to delay in filing of GSTR-3B returns. The petitioner contended that no interest could be levied on tax, which was deposited by the petitioner prior to the due date of payment of tax, that is prior to the due date of filing of GSTR 3B returns. The court observed that a combined reading of Section 49(1) and Rule 87 (6) and (7) shows that deposit in Electronic Cash Ledger does not mean that the amount is appropriated towards the Government exchequer. Further, sub-section (3) of Section 49 indicates that such amount available in the Electronic Cash Ledger is used for making payment towards tax, interest, penalty, fees or any other amount under the provisions of the Act. Explanation to sub-section (11) of Section 49 also makes it clear that the date of credit to the amount of Government in the authorized Bank shall be deemed to be the date of deposit in the Electronic Cash Ledger. The deposit in the Electronic Cash Ledger, therefore, does not amount to payment of the tax liability. Under the Act, no person can make payment of tax prior to filing of GSTR 3B return, though such deposits may be made or are lying in his Electronic Cash Ledger. Tax liability gets discharged only upon filing of GSTR 3B return, mere deposit of amount in the Electronic Cash Ledger on any date prior to filing of GSTR-3B return, does not amount to payment of tax due to its State exchequer. Further, proviso to Section 50, also shows that the interest on tax payable during the tax period and declared in the return for the said period furnished after the due date in accordance with the provisions of Section 39, shall be payable on that portion of the tax which is paid by debiting the Electronic Cash Ledger. The Revenue has rightly computed the interest on such delayed payment.

Held that:- The Hon’ble Court dismissed the writ petition.