2017 Taxo.online 17

W.P. (C) No. 7977/2017 dated 08.09.2017





Central Goods & Services Tax Act, 2017

Section 49

CGST Rules 2017

Rule 86

S. Muralidhar, Justice & Prathiba M. Singh, Justice


High Court


Denial of SGST credit for payment of IGST – Petitioner contended that the portal not allowing him to set-off the State tax credit with Integrated tax without first complete utilization of Central tax credit balance – Petitioner also contended that system cannot be programmed to deny the utilization of CGST and SGST credit in a manner not envisaged either under Section 49 (5) of the Act or the Rules made under Section 49 (4) of the Act – Time Sought for instructions – Relisted.

Represented by: – 

Petitioner: – Mr. Puneet Agarwal, Mr. Anirudh Singhal & Ms. Purvi Sinha, Advocates. 

Respondent: – Mr. Nidhi Mohan, Mr. Ramesh Singh, Mr. Sandeepan Pathak, Advocate, Mr. Rahul Singh & Mr. Satyakam, ASC. 

Order: – 

C.M. APPL. 32898/2017  

1. Allowed, subject to all just exceptions. 

W.P. (C) No. 7977/2017. 

2. Notice. Mr. Ramesh Singh, learned Standing Counsel, accepts notice on behalf of GNCTD. 

3. The issue raised in the present petition concerns the utilisation of CGST credit and SGST credit for payment of integrated tax in terms of Section 49 (5) of the Central Goods and Services Tax Act, 2017 (‘CGST Act’). The Petitioner states that its attempt to make payment of the integrated tax partially from the CGST credit and partially from the SGST credit was frustrated when the Electronic Credit Ledger available at the Portal www.gst.gov.in showed a pop-up error message which stated: “Offset the CGST Credit completely before cross utilization [of] SGST Credit against IGST tax liability.”

4. Mr. Puneet Agarwal, learned counsel for the Petitioner, points out that this pop-up error is appearing only on the system and there is no such rule prescribed in terms of Section 49 (4) of the CGST Act. He also states that it does not appear on the form which is available on the Portal. It appears only after the figures are entered. A reference is made to Rule 86 (2) of the CGST Rules which states that `the electronic credit ledger shall be debited to the extent of discharge of any liability in accordance with the provisions of Section 49.’ It is also pointed out that under Section 146 of the CGST Act, the mandate of the Common Goods and Services Tax Electronic Portal is to facilitate the registration, payment of tax, furnishing of its returns, etc. It is also submitted that the system cannot be programmed so as to deny the utilization of CGST and SGST credit in a manner not envisaged either under Section 49 (5) of the Act or the Rules made under Section 49 (4) of the Act.

5. Mr. Ramesh Singh, learned Counsel appearing for GNCTD, states that some time may be granted for obtaining instructions.

6. List on 26th September 2017.

Free Trial

Are you looking for the Latest Rules, Notifications, and Case Laws?

Book your 7 days free trial

Book Now