MAHARASHTRA GOODS SERVICE TAX ACT, 2017

Section 107

Appeal to appellate authority - Utilization of electronic credit ledger for making pre-deposit under section 107(6) - Allowability of -

The issue involved in the petition was whether an appellant to comply with requirements of sub-section (6) of section 107 of the Maharashtra Goods and Services Tax Act, 2017 (MGST Act) of paying a sum equal to 10% of the amount of tax in dispute could pay the amount utilising the credit available in the electronic credit ledger. Revenue claimed that the appellant can utilise the credit available only in the Electronic Cash Ledger. Held: The CBIT&C, vide Circular F. No.CBIC-20001/2/2022-GST dated 6-7-2022 has clarified that any amount towards output tax payable, as a consequence of any proceeding instituted under the provisions of GST Laws, can be paid by utilisation of the amount available in the Electronic Credit Ledger of a registered person. The appellant may utilise the amount available in the Electronic Credit Ledger to pay the 10% of tax in dispute as prescribed under sub-section (6) of section 107 of MGST Act.

REFERRED : Jyoti Construction v. Dy. Commr. of CT & GST 2021

FAVOUR : In favour of assessee.

A.Y. :

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