Gujarat High Court Upholds GST Advisory on Interest for Delayed Tax Payment

The Gujarat High Court dismissed a plea challenging a GST Advisory that sought interest for delayed self-assessed tax payments over multiple years.

The Court observed that the Advisory issued by the Assistant Commissioner of State Tax was merely a notice, and didn’t trigger recovery proceedings.

The Court clarified that interest under Section 50(1) of the GST Act is automatic, and Rule 142B requires a formal intimation before any recovery.

The petitioner's claims of arbitrariness and violation of natural justice were rejected, with the Court affirming that a full opportunity to respond remains when formal recovery notices are issued.