Case Law Details
Sumilon Polyster Limited Vs Union of India (Gujarat High Court)
Issue- Superintendent of Central Goods and Services Tax demanded interest on delayed payment of tax under the provisions of CGST Act and GGST Act by calculating the interest on the gross GST liability instead of net GST liability as per section 50(1) of the CGST Act.
It was submitted that the amendment of section 50 by the Finance Act, 2021 is notified by Notification No. 16 of 2021 issued by the Government of India, Ministry of Finance (Department of Revenue), Central Board of Indirect Taxes and Customs to the effect that in exercise of powers conferred by sub-section (2) of section 1 of the Finance Act, 2021 [13 of 2021], the Central Government has appointed the 1st day of June, 2021 as the date on which, the provision of section 112 of the said Act shall come into force. In view of the Notification No. 16 of 2021, the proviso which is substituted vide sub-section 50(1) of the CGST Act w.e.f. 1st day of July, 2017, therefore, would take care of the issue raised in this group of petitions of charging interest on the net GST liability instead of gross GST liability as calculated by respondent No.3.
Learned advocate Mr. Nikunt Raval for the respondent-authorities also submitted that in view of the amendment of section 50(1) w.e.f. 1st day of July, 2017 by inserting the aforesaid proviso would redress the grievance raised by the petitioners of charging the interest on the gross amount of GST liability.
FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT
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