The amount paid in Electronic Cash Ledger is equal to credit to the account of the Government.
The Hon’ble Madras high court in the case of M/s. Eicher Motors Limited has held that interest under section 50 will not be payable if amount equal to tax is available as balance in electronic cash ledger.
Say For example: If due to any reason, GSTR-3B is not filed on time but the tax liability is paid in Electronic Cash ledger, then there shall be no interest liability under section 50 of the Act.
Welcome Judgement which shall help many taxpayers as initially during introduction of GST, taxpayers could not file GSTR-3B due to technical clitches and therefore, the dept has initiated proceedings for demand of interest.
The copy of the order is as under: