GSTR-1 is declaration of tax liability only, hence Filing of GSTR-3B returns mandatory as evidence for actual payment.

Facts– The petitioner, Kabeer Reality Private Limited is carrying on business of renting immovable property and has filed this present petition being aggrieved by the order/notice dated 8-7- 2019 passed by the Deputy Commissioner, CGST & Central Excise, Division-V, Indore, by which the Respondent No. 2 has issued a notice to the tenants of the petitioner for initiating recovery against them.

Held– The Hon’ble Court held that GSTR-1 is declaration of tax liability and GSTR-3B is evidence of actual payment. The petitioner has stated that GSTR-1 cannot be termed or classified as self-assessed liability, it is only a declaration made for limited purpose. The said issue stands concluded on account of notification dated 9-10-2019 bearing No. 49/2019, wherein an amendment has been made in Rule 61 of the GST Rules with retrospective effect and filing of GSTR-3B has been made compulsory. The petitioner appears to be a chronic defaulter and has requested the Commissioner for grant of instalment, the same document is also on record and the respondents have rightly issued notice by taking shelter of Section 79(1)(c) of the Act of 2017 to the tenants of the petitioner.

In the opinion of the Court, the tax is being recovered from the petitioner after following due process of law. The petitioner cannot escape his liability of payment of GST under Act of 2017, especially when he has filed GSTR-1 and has quantified the tax payable by him while submitting the GSTR-1.

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