Section 80 of the CGST Act, 2017 read with Rule 158 of the CGST Rules, 2017 governs the provisions for Payment of tax and other amounts in installments.

Following aspects are dealt in the form of questions and their answers.

Q 1. Who is allowed to make payment of tax and other amount in installments?

Answer. All Taxable persons other than (a) the taxable person who has already defaulted on the payment of any amount under the Act or the IGST Act, 2017 or UTGST Act, 2017 or any 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 Act or the Integrated Goods and Services Tax Act, 2017 or the Union Territory Goods and Services Tax Act, 2017 or any of the State Goods and Services Tax Act, 2017;

Q 2. What are the components for which payment in installments is allowed?

Answer. Payments, other than the amount due as per the liability self-assessed in any return, are allowed to be paid in installments.

Q 3. What is the process for payment of tax and other amount in installments?

Answer. Taxable person shall make an application in FORM GST DRC- 20. After that the Commissioner shall call for a report’ from the jurisdictional officer about the financial ability of the taxable person to pay the said amount. 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, as he may deem fit.

Q 4. What is the amount and time allowed to make payment of tax and other amount in installments?

Answer. Monthly installments of not exceeding twenty-four are allowed and the amount for which installment facility is sought shall not be less than 25000/- rupees.

Q 5. What are the consequences if a person defaults in paying installment?

Answer. Where there is default in payment of any one installment 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.

This particular section can be resorted to avail the facility to pay taxes in installments subject to conditions as enumerated under above mentioned answers.

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January 2021