GST Interest

Interest on Net Tax Liability under GST | Budget 2021| Section 50 | CGST Act

Goods and Services Tax - Clause No. 103 of the Finance Bill, 2021 provides charging of interest on Net Tax Liability u/s 50, CGST Act, 2017 by substituting proviso to sub-section 1 retrospectively, w.e.f. 1.7.2017. Section 50(1) of the CGST Act after the proposed amendment, if implemented, will read as under;  “50. Interest on delayed payment of tax.─(1) Eve...

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GST- Budget 2021: Interest leviable only on Net Tax Liability?

Goods and Services Tax - This GST Charcha deciphers into recent changes in GST Laws made vide Clause No. 103 of the Finance Bill, 2021 to provide certainty as to leviability of interest only on Net Tax Liability....

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GST Amendment Proposed In Finance Bill 2021

Goods and Services Tax - As the day progresses we professionals are going through lot of GST amendments, circulars, notifications etc .and yet we are finding it how to make it good and simple tax for our clients .In this budget, the main focus of government was to collect tax overruling all previous supreme court judgments or high courts judgements. […]...

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Retrospective amendment in respect of interest on delayed payment of GST

Goods and Services Tax - It is stated that proviso to sub-section (1) of Section 50 of the Central Goods and Service Tax, 2017 (CGST Act, 2017) is sought to be amended to substitute retrospectively with effect from the 1’st July, 2017, vide Clause 103 of Finance Bill, 2021, so as so as to charge interest on net cash liability […]...

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Interest when GST paid within due date but return filed late

Goods and Services Tax - Interest not payable if GST return filed belatedly but amount deposited in Cash Ledger within due date? During the inception of GST era and with the nascent GST portal, one of the most popular confusion that conned everyone was, whether payment of GST is completed with deposition of tax amount in Cash Ledger (CL) or […]...

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CBIC issues 9 GST Notification & one Instruction on 24.06.2020

Goods and Services Tax - CBIC has issued one GST Instruction, Two IGST Notifications, 6 CGST Notifications and one UTGST Notification on 24th June 2020. Notifications are for notifying relaxation in GST Interest Rate & Late Fees with respect to Form GSTR 3B, For notifying Waiver of Late Fees for GSTR 1, Notification of Due dates of GSTR 3B, Amendment [&hellip...

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40th GST Council Meeting gives Relief from Interest & Penalty

Goods and Services Tax - Key outcome of 40TH GST council meeting – The 40th GST COUNCIL met under the chairmanship of Union Minister for Finance & Corporate Affairs Nirmala Sitharaman here today. Read- Recommendations of 40th GST council related to Law & Procedure Summary of Relief granted by 40th GST Council Meeting to taxpayers  Period Category of ta...

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Stop Charging Interest on Gross GST Tax & Stop coercive action

Goods and Services Tax - Ahilya Chamber of Commerce and Industry has made a request to Prime Minister of India to instruct CBIC through Finance Ministry to stop imposing unjust interest on GROSS TAX for belated payment of tax and returns despite its having agreed earlier, in its 31st meeting, that interest is payable on NET Tax liability only. Full […]...

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CBIC justifies Interest on delayed payment based on gross GST liability

Goods and Services Tax - CBIC has issued a Series of Tweet on 15th February 2020 and justified interest calculation on delayed GST payment on the basis of gross tax liability. Excerpt of Tweets is as follows:- There are some discussions in social media w.r.t. interest calculation on delayed GST payments post a few media reports regarding Rs. 46000 Cr […]...

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Interest to be levied only on net cash liability of GST

Goods and Services Tax - Recently, section 50 of Central goods and services tax act was amended to provide that interest will now be charged on only that portion of the GST liability which is paid by debiting the electronic cash ledger. The present rate of interest on the delayed payment of tax liability is 18% per annum on unpaid […]...

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Jharkhand HC disposes Writ as state imposing interest on Net GST Liability

BGR Mining & Infra Limited, Dhanbad Vs State of Jharkhand (Jharkhand High Court) - BGR Mining & Infra Limited Vs State of Jharkhand (Jharkhand High Court) We have considered the submission of learned counsel for the parties in respect of the issue of levy of interest under Section 50 of the Act on the gross tax liability as upheld in appeal by the Respondent Joint Commissioner...

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Section 50- Interest on Net Liability- Gujarat HC Issues Notice to Govt

Flair Writing Industries Ltd. Vs Union of India (Gujarat High Court) - Flair Writing Industries Ltd. Vs Union of India (Gujarat High Court) The Gujarat High Court issued the notice to Government over constitutional validity of the proviso to Section 50 of CGST Act, 2017. The subject matter of challenge in the present litigation is to the constitutional validity of the ...

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No section 50 interest on GST payment made through input tax credit

Maansarovar Motors Private Ltd. Vs Assistant Commissioner (Madras High Court) - Maansarovar Motors Private Ltd. Vs Assistant Commissioner (Madras High Court) Conclusion: Every person who is liable to pay tax in terms of the Act shall remit the tax either in cash or by way of adjustment of credit available in the Input Tax Credit (ITC) register. Where delay is made in remitting ...

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Interest payable only on Gross GST Liability even Prior to Section 50 Amendment

KLT Automotive and Tubular Products Ltd. Vs Union of India (Bombay High Court) - The issue under consideration is whether interest under section 50 of the Central Goods and Service Tax Act, 2017 is to be levied on the gross tax liability? HC are of the view that no live issue survives for adjudication in this case. Recovery notices issued by the respondents are hereby quashed....

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GST -Section 50 CGST Act, 2017 – Interest liability for delayed payment of GST on net cash tax liability

Prasanna Kumar Bisoi Vs Union of India (Orissa High Court) - Prasanna Kumar Bisoi Vs  Union of India  (Orissa High Court) In a recent ruling passed by Hon’ble Orissa high court, held that w.r.t. interest liability for delayed payment of GST under Section 50(1) of the CGST Act, 2017, is required to be paid on net cash tax liability in view of the decision ...

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GST: Recovery interest on net cash tax liability w.e.f. 01.07.2017: CBIC

F. No. CBEC- 20/01/08/2019-GST - (18/09/2020) - For the period 01.07.2017 to 31.08.2020, field formations in your jurisdiction may be instructed to recover interest only on the net cash tax liability (i.e. that portion of the tax that has been paid by debiting the electronic cash ledger or is payable through cash ledger); and...

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Interest on delayed payment of GST on net liability wef 01.07.2017: CBIC

Release ID: 1648751 - (26/08/2020) - CBIC today clarified that Notification No. 63/2020-Central Tax dated 25th August 2020 relating to interest on delayed payment of GST has been issued prospectively due to certain technical limitations....

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Interest on Net GST Liability wef 01.09.2020- Govt notifies New Battle for Taxpayer

Notification No. 63/2020–Central Tax - (25/08/2020) - CBIC notified Proviso to Section 50(1) of CGST Act, 2017 – Interest in GST to be levied on Net Tax liability w.e.f September 1, 2020 and on Gross Liability till 31st August 2020. Section 50 of CGST Act 2017 was amended by Finance (No. 2) Act, 2019 (23 of 2019) by inserting a proviso to […]...

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CBIC clarifies on manner of calculation of interest & Late Fees

Circular No.141/11/2020-GST - (24/06/2020) - CBIC clarified on Manner of calculation of interest for taxpayers having aggregate turnover above Rs. 5 Cr., Manner of calculation of interest for taxpayers having aggregate turnover below Rs. 5 Cr. and Manner of calculation of late fee vide Circular No. 141/11/2020-GST Dated 24th June, 2020. Circul...

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Interest rate (Feb to July 2020) for delayed filing/payment of GSTR 3B

Notification No. 51/2020-Central Tax/G.S.R. 404(E) - (24/06/2020) - CBIC notifies lowered interest rate for a prescribed time for tax periods from February, 2020 to July, 2020 for delayed filing of GSTR 3B vide Notification No. 51/2020-Central Tax Dated 24th June, 2020. Ministry of Finance (Department Of Revenue) (Central Board of Indirect Taxes and Customs) Notific...

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Recent Posts in "GST Interest"

Interest on Net Tax Liability under GST | Budget 2021| Section 50 | CGST Act

Clause No. 103 of the Finance Bill, 2021 provides charging of interest on Net Tax Liability u/s 50, CGST Act, 2017 by substituting proviso to sub-section 1 retrospectively, w.e.f. 1.7.2017. Section 50(1) of the CGST Act after the proposed amendment, if implemented, will read as under;  “50. Interest on delayed payment of tax.─(1) Eve...

Read More

GST- Budget 2021: Interest leviable only on Net Tax Liability?

This GST Charcha deciphers into recent changes in GST Laws made vide Clause No. 103 of the Finance Bill, 2021 to provide certainty as to leviability of interest only on Net Tax Liability....

Read More

GST Amendment Proposed In Finance Bill 2021

As the day progresses we professionals are going through lot of GST amendments, circulars, notifications etc .and yet we are finding it how to make it good and simple tax for our clients .In this budget, the main focus of government was to collect tax overruling all previous supreme court judgments or high courts judgements. […]...

Read More

Retrospective amendment in respect of interest on delayed payment of GST

It is stated that proviso to sub-section (1) of Section 50 of the Central Goods and Service Tax, 2017 (CGST Act, 2017) is sought to be amended to substitute retrospectively with effect from the 1’st July, 2017, vide Clause 103 of Finance Bill, 2021, so as so as to charge interest on net cash liability […]...

Read More

Jharkhand HC disposes Writ as state imposing interest on Net GST Liability

BGR Mining & Infra Limited, Dhanbad Vs State of Jharkhand (Jharkhand High Court)

BGR Mining & Infra Limited Vs State of Jharkhand (Jharkhand High Court) We have considered the submission of learned counsel for the parties in respect of the issue of levy of interest under Section 50 of the Act on the gross tax liability as upheld in appeal by the Respondent Joint Commissioner of State Sales […]...

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Section 50- Interest on Net Liability- Gujarat HC Issues Notice to Govt

Flair Writing Industries Ltd. Vs Union of India (Gujarat High Court)

Flair Writing Industries Ltd. Vs Union of India (Gujarat High Court) The Gujarat High Court issued the notice to Government over constitutional validity of the proviso to Section 50 of CGST Act, 2017. The subject matter of challenge in the present litigation is to the constitutional validity of the proviso to Section 50 of the […]...

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Interest when GST paid within due date but return filed late

Interest not payable if GST return filed belatedly but amount deposited in Cash Ledger within due date? During the inception of GST era and with the nascent GST portal, one of the most popular confusion that conned everyone was, whether payment of GST is completed with deposition of tax amount in Cash Ledger (CL) or […]...

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Interest on Delayed GST Refunds: A Saga of Tussled Interpretations

Introduction It has been a trite law that interest on delayed refund is assessee’s right, so much so that the CESTAT in the case of BSL Ltd. v. CCE [2019-TIOL-3407-CESTAT-DEL] has even gone ahead to grant interest over delayed payment of interest although there is no provision for payment of interest over interest, observing that [&hell...

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Interest to be charged on Net Tax liability w.e.f July 01, 2017

The Hon’ble Madras High Court in the case of M/s. Maansarovar Motors Private Limited v. The Assistant Commissioner and Others [W.P. No. 4468 of 2020, dated 29 September, 2020] has set aside orders for levying interest on input tax credit (“ITC”) as applied on delayed payment in line with GST Council’s resolution of levying interes...

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No section 50 interest on GST payment made through input tax credit

Maansarovar Motors Private Ltd. Vs Assistant Commissioner (Madras High Court)

Maansarovar Motors Private Ltd. Vs Assistant Commissioner (Madras High Court) Conclusion: Every person who is liable to pay tax in terms of the Act shall remit the tax either in cash or by way of adjustment of credit available in the Input Tax Credit (ITC) register. Where delay is made in remitting the tax, no […]...

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