Non-Payment of Interest on Delayed GST Payment and Mismatch in Returns: Madras HC grants Final Opportunity to Explain discrepancies

The Madras High Court has granted a final opportunity for a taxpayer to explain discrepancies arising from a mismatch in GST returns and the non-payment of interest on delayed GST payments. The taxpayer had failed to reconcile the mismatched entries between their GSTR-3B and GSTR-1 filings, leading to discrepancies in tax reporting. The court’s decision ensures that the taxpayer is given a chance to present their case before any penalty is imposed. The ruling underscores the importance of timely and accurate GST filings, as well as the right of taxpayers to be heard before enforcement actions are taken.