Decided 29 September 2026. The Raipur Bench of GSTAT has held that, for periods before 10.07.2024, cash credited to the electronic cash ledger before the due date is only a deposit; tax is 'paid' only when the ledger is debited on filing the delayed GSTR-3B, so interest runs until then. It treated the 2024 proviso to Rule 88B(1) as prospective. This differs from the GSTAT Delhi view in Kanthwal Services.
Case at a glance
| Case | Shri Shyam Ispat India Pvt. Ltd. v. Commissioner, State Tax, Chhattisgarh & Ors. |
| Forum | GSTAT, Raipur Bench, Division Bench Court I |
| Appeal Nos. | APL/171, 172 and 173/RPR/2026 |
| Date of order | 29 September 2026 |
| Disputed interest | Rs 28,67,207 across three appeals |
| Result | Appeals dismissed; credit to be given for all amounts paid or recovered |
Facts of the case
The appellant, an iron and steel manufacturer, filed some GSTR-3B returns late, but had credited enough cash to its electronic cash ledger before the due dates, which stayed there until the ledger was debited on filing. The department admitted these facts.
Interest was demanded under section 73 by notices of 07.02.2020 and confirmed on 07.03.2020 without the personal hearing requested. The first appeals were dismissed on 14.12.2020. Writ petitions filed while GSTAT was not functioning were later withdrawn.
Issue before the Tribunal
Does interest stop when cash is credited to the electronic cash ledger, or only when the ledger is debited against the return liability?
What the Tribunal held
- Non-grant of the requested hearing breached section 75(4), but remand was declined because the facts and figures were admitted and the legal issue was fully argued; remand would be an empty formality.
- Section 49(1) speaks of a 'deposit', while section 49(3) and Rule 85(3) treat debit of the ledger as payment. A CIN proves receipt of money, not its appropriation to a particular liability.
- The retrospective proviso to section 50(1) and Rule 88B(1) refer to tax 'paid by debiting the electronic cash ledger' and to the 'period of delay in filing the return'. The Tribunal preferred RSB Transmissions, Sincon Infrastructure and India Yamaha over Eicher Motors and Arya Cotton.
- The proviso added to Rule 88B(1) by Notification 12/2024-Central Tax from 10.07.2024 has no retrospective language, and the 53rd GST Council agenda shows it was a new relief. It does not apply to earlier periods.
- The appeals were dismissed, with directions to give credit for all amounts paid, deposited, recovered or adjusted and to avoid double recovery.
Practical takeaways for taxpayers
- There is now a split between GSTAT benches: Delhi (Kanthwal Services) stops interest on cash deposit, while Raipur runs it till ledger debit for pre-10.07.2024 periods.
- From 10.07.2024, Rule 88B(1) expressly excludes cash lying in the ledger from the due date until debit; rely on it for later periods.
- Watch for a ruling of your jurisdictional High Court; the Tribunal noted there was no binding Supreme Court or jurisdictional High Court decision on this issue.
Frequently asked questions
Does interest stop when I deposit cash before the due date but file GSTR-3B late?
For pre-10.07.2024 periods, GSTAT Raipur said no; interest runs till the ledger is debited. GSTAT Delhi has taken the opposite view.
Is the 2024 amendment to Rule 88B retrospective?
GSTAT Raipur held it is prospective from 10.07.2024.
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This summary is based on the order of the GST Appellate Tribunal, Raipur Bench (Division Bench Court I) in Appeal Nos. APL/171, 172 and 173/RPR/2026. It is general information, not legal advice; the outcome of any case depends on its own facts and the full text of the order.