Payment of tax and other amount in installments Section-80 (CGST Act 2017) +Rule-158 (CGST Rules 2017)
Payment of tax and other amount in installments
Section-80 (CGST Act 2017) +Rule-158 (CGST Rules 2017)
Legal Provision (Bare Act)
Section 80 -Payment of tax and other amount in installment
On an application filed by a taxable person, the Commissioner may, for reasons to be recorded in writing, extend the time for payment or allow payment of any amount due under this Act, other than the amount due as per the liability self-assessed in any return, by such person in monthly installments not exceeding twenty four, subject to payment of interest under section 50 and subject to such conditions and limitations as may be prescribed:
Provided that where there is default in payment of any one installments on its due date, the whole outstanding balance payable on such date shall become due and payable forthwith and shall, without any further notice being served on the person, be liable for recovery.
Crux:-
- Written Application can be filed by Taxable Person To Commissioner
- Commissioner for reasons to be recorded in writing :-
- Extend the time for payment (Deferment of Payment)
Or
- Allow payment of any amount due in Maximum 24 monthly installments (Installment Payment)
- Above facility only applicable for Demand /Recovery /Collection not for the amount due as liability self-assessed in any GST return
Payment of tax and other amounts in installments
(1) On an application filed electronically by a taxable person, in FORM GST DRC- 20, seeking extension of time for the payment of taxes or any amount due under the Act or for allowing payment of such taxes or amount in installments in accordance with the provisions of section 80, the Commissioner shall call for a report from the jurisdictional officer about the financial ability of the taxable person to pay the said amount.
(2) Upon consideration of the request of the taxable person and the report of the jurisdictional officer, the Commissioner may issue an order in FORM GST DRC- 21 allowing the taxable person further time to make payment and/or to pay the amount in such monthly installments, not exceeding twenty-four, as he may deem fit.
(3) The facility referred to in sub-rule (2) shall not be allowed where-
(a) The taxable person has already defaulted on the payment of any amount under the CGST /IGST/UTGST/SGST Act, 2017, for which the recovery process is on;
(b) the taxable person has not been allowed to make payment in installments in the preceding financial year under the CGST /IGST/UTGST/SGST Act, 2017;
(c) the amount for which installments facility is sought is less than Rs.25,000/-.
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