Andhra Pradesh High Court Clarifies Impact of Late GSTR-3B Filing on Section 62 GST Assessments

Background of the Dispute

In Vijayalakshmi Housing Vs Assistant Commissioner, the Andhra Pradesh High Court examined whether assessment orders issued under Section 62 of the GST Act could survive once the assessee files the pending GSTR-3B returns along with the prescribed late fee.

Three writ petitions were heard together, as all involved a common assessee and identical legal issues. The impugned assessment orders related to:

  • November 2022
  • December 2022
  • January 2023

These assessments had been framed under Section 62 of the GST Act on the premise that the assessee failed to furnish returns for the above tax periods. Subsequently, the assessee filed GSTR-3B returns for all three months and paid late fees, invoking the protection granted under Section 62(2).

The High Court was called upon to decide whether, in light of such delayed filing and payment of late fee, the earlier best judgment assessment orders and consequential recovery actions could still be enforced.

Facts Considered by the Court

Assessment Orders under Section 62

The Department passed three separate best judgment assessment orders under Section 62 of the GST Act, alleging non-filing of returns by the assessee for the relevant months. The orders were passed on different dates as shown below:

  • For November 2022 – Demand order dated 04.03.2023
  • For December 2022 – Demand order dated 10.03.2023
  • For January 2023 – Demand order dated 12.05.2023

All these orders were passed ex parte on the basis of non-compliance with return filing obligations.

Subsequent Filing of GSTR-3B and Late Fees

The assessee later regularized the compliance by filing Form GSTR-3B for all the three months on 08.11.2023. Along with the returns, the assessee also paid late fee under Section 62(2) towards both CGST and SGST components.

The table below summarizes the key dates and late fee details as recorded in the judgment:

Details of assessment and subsequent compliance

  • W.P. No. 3534/2026 – Month: November 2022

    • Date of impugned demand order: 04.03.2023
    • Date of filing Form GSTR-3B: 08.11.2023
    • CGST late fee u/s Section 62(2): Rs. 18,900
    • SGST late fee u/s Section 62(2): Rs. 18,900

  • W.P. No. 3539/2026 – Month: December 2022

    • Date of impugned demand order: 10.03.2023
    • Date of filing Form GSTR-3B: 08.11.2023
    • CGST late fee u/s Section 62(2): Rs. 18,300
    • SGST late fee u/s Section 62(2): Rs. 18,300

  • W.P. No. 3540/2026 – Month: January 2023

    • Date of impugned demand order: 12.05.2023
    • Date of filing Form GSTR-3B: 08.11.2023
    • CGST late fee u/s Section 62(2): Rs. 12,000
    • SGST late fee u/s Section 62(2): Rs. 12,000

Total late fee

  • CGST: Rs. 49,200
  • SGST: Rs. 49,200

Claim of Exempt Turnover

The assessee also asserted that the supplies reflected in these returns pertained only to exempt turnover.