2018 Taxo.online 179
W.P.(C) 6345/2018 dated 01.06.2018
BHARTI AIRTEL LIMITED
UNION OF INDIA & ORS.
Central Goods & Services Tax Act, 2017
Section 54 of CGST, 2017
S. Ravindra Bhat, Justice and A. K. Chawla, Justice
Represented by: –
Petitioner: – Mr. P. Chidambaram, Sr. Adv. With Mr. Tarun Gulati, Mr. Sparsh Bhargava,
Mr. Nikhil Gupta, Mr. Vipin Upadhyay, Mr. Vasu Nigam & Mr. Vinayak Mathur
Respondent: – Mr. Sanjeev Narula, CGSC with Mr. Abhishek Ghai, Adv. for R-1/UOI.
Mr. Harpreet Singh, Sr. Standing Counsel for R-2 to 4.
Mr. Sanjeev Narula and Mr. Harpreet Singh, learned Standing Counsel accept notice for the respondent Nos.1 and 2 to 4 respectively.
The petitioner’s grievance is that under the Central Goods and Services Tax Act, 2017 and Rules framed thereunder, the regime requires it to file GSTR-1 forms and submit them electronically which automatically triggers input credit under GSTR-2 and its net liability under GSTR-3. The operationalisation of these two forms (GSTR-2 and GSTR-3) apparently were postponed initially by notification dated 08.08.2017 which was subsequently extended from time to time on five occasions– the last extension being on 29.12.2017. It is submitted that in place of GSTR-2 and 3, a new GSTR-3B has been introduced which is currently resorted to by service providers.
Learned senior counsel submitted that GSTR-3B and the related mechanism contemplates its provisional use and does not indicate any timely reconciliation. This, it is submitted, has lead to serious economic consequences whereby the petitioner is stated to have paid excess duty to the extent of `700 crores approx. and is unable to either adjust its input credit available or apply for a refund. Learned counsel highlighted Section 54 of the Act to say that the vacuum created on account of the suspension of the two forms and the related absence of any clarification, has lead to this serious impasse.
Counsel for the Revenue submits that he would take appropriate instructions and make submissions in the Court on the next date of hearing. A counter affidavit on all aspects, especially dealing with these issues shall be filed within four weeks.
List on 24.07.2018.