GST Interest

‘Interest’ on Net Tax Liability under GST – Light at the end of Tunnel?

Goods and Services Tax - The interest liability for any belated remittance is an economic consequence. The tax laws are no exception to this rule. GST law provides for interest @18% on the delayed remittance of the tax after due date. A question was raised as to whether the interest has to be paid on Gross Tax liability (i.e. the […]...

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Delayed GST payment: Interest to be charged on net tax liability from September 1

Goods and Services Tax - Delayed GST payment: Interest to be charged on net tax liability from September 1   Hello friends greetings for the day, in the current article we will discuss about interest on delayed payment of tax. We will also discuss about the confusion regarding notification No 63/2020-Central Tax to be prospective from September 1st 2020 or [&hel...

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Analysis of interest provision w.r.t. section 50(1) under CGST Act, 2017

Goods and Services Tax - Analysis of interest provision w.r.t. section 50(1) under Central Goods & Services Tax Act (CGST Act), 2017 Background The proviso to Sec 50(1) of the CGST Act was first introduced vide Finance (No. 2) Act, 2019 dated 1 August 2019. The relevant extract of the provisions are enumerated herein below : “It states that the [&hellip...

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Prospective effect is not at all a problem – Interest on GST Liability

Goods and Services Tax - Prospective Effect is not at all a Problem – Interest on GST liability “Every single move in life have Double Effect i.e. prospective as well as Retrospective” Introduction Interest is always considered as compensatory in nature and it has been imposed on a registered person who has failed to pay the tax liability within the [&helli...

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Interest for delayed GST payment – Proviso to Section 50(1)

Goods and Services Tax - Introduction: Before implementation of GST, government was planning to collect good fund through it but it remains the dream and actual fund collection continuously remain short from the budgeted value. Now, government is planning to collect approx. 46000 crore through interest on delayed payment of tax. Notices has started to the assesse...

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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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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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No interest demandable for delay in GST credit to Govt Account

Messrs Vishnu Aroma Pouching Pvt. Ltd. Vs Union of India (Gujarat High Court) - Messrs Vishnu Aroma Pouching Pvt. Ltd. Vs Union of India (Gujarat High Court) In this case petitioner had duly discharged the tax liability of August, 2017 within the period prescribed therefor; however, it was only on account of technical glitches in the System that the amount of tax paid by the pe...

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Principles of natural justice must be complied with before demanding GST interest

Union of India Vs LC Infra Projects (P.) Ltd. (Karnataka High Court) - Before penalizing the assessee by making him pay interest, the principles of natural justice ought to be complied with before making a demand for interest under sub section (1) of Section 50 of the GST Act. Consequence of demanding interest and non-payment thereof is very drastic....

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Garnishee proceedings cannot be initiated for recovery of GST Interest without adjudication: HC

Mahadeo Construction Co. Vs Union of India (Jharkhand High Court) - Mahadeo Construction Co. Vs Union of India (Jharkhand High Court) High Court held that interest liability under section 50 is although automatic, but it’s computation and demand can be raised only after initiation of Adjudication proceedings under Section 73 or 74 in case the assesse disputes the ...

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AP HC stays recovery of Section 50 Interest on ITC under GST

Srinidhi Marketing Vs Union of India (Andhra Pradesh High Court) - Considering facts that as per Section 50 of the Central Goods and Services Act, 2017, interest is payable on the delayed payment of tax and that as per the interest statement filed along with the impugned letter, dated 07.02.2020, there was delay in filing GSTR-3B and hence, interest on 'cash set of...

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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"

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...

Read More

‘Interest’ on Net Tax Liability under GST – Light at the end of Tunnel?

The interest liability for any belated remittance is an economic consequence. The tax laws are no exception to this rule. GST law provides for interest @18% on the delayed remittance of the tax after due date. A question was raised as to whether the interest has to be paid on Gross Tax liability (i.e. the […]...

Read More

Delayed GST payment: Interest to be charged on net tax liability from September 1

Delayed GST payment: Interest to be charged on net tax liability from September 1   Hello friends greetings for the day, in the current article we will discuss about interest on delayed payment of tax. We will also discuss about the confusion regarding notification No 63/2020-Central Tax to be prospective from September 1st 2020 or [&hel...

Read More

Analysis of interest provision w.r.t. section 50(1) under CGST Act, 2017

Analysis of interest provision w.r.t. section 50(1) under Central Goods & Services Tax Act (CGST Act), 2017 Background The proviso to Sec 50(1) of the CGST Act was first introduced vide Finance (No. 2) Act, 2019 dated 1 August 2019. The relevant extract of the provisions are enumerated herein below : “It states that the [&hellip...

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Prospective effect is not at all a problem – Interest on GST Liability

Notifcation No. 63/2020- Central Tax

Prospective Effect is not at all a Problem – Interest on GST liability “Every single move in life have Double Effect i.e. prospective as well as Retrospective” Introduction Interest is always considered as compensatory in nature and it has been imposed on a registered person who has failed to pay the tax liability within the [&helli...

Read More

Interest for delayed GST payment – Proviso to Section 50(1)

Introduction: Before implementation of GST, government was planning to collect good fund through it but it remains the dream and actual fund collection continuously remain short from the budgeted value. Now, government is planning to collect approx. 46000 crore through interest on delayed payment of tax. Notices has started to the assesse...

Read More

Interest on late Payment of GST

The taxpayers contended that interest on delayed payment of GST should be levied on the net tax payable i.e. amount debited from electronic Cash Ledger whereas the department contended that interest should be levied on the gross amount of tax payable....

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Jurisprudence on levying interest under GST – Gross or Net

In the light of above discussion, it is clear that, interest in taxation matters has to be levied as a compensation for deprival of entitled funds to revenue within due date. Whereas with respect to input tax credit, such amounts are already being collected by the revenue from the supplier of the taxpayer and levying of interest from the ...

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Notification no. 63/2020-CT under GST law- nothing to be worried for

Section 100 of the Finance Act (No. 2), 2019 has been notified on 25/08/2020 vide Notification no. 63/2020-Central Tax Dated 25.08.2020. Strong reactions have been witnessed in last few hours after the aforesaid notification made public. Let us recall the total issue before making any bold reaction....

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Do the sarkar (CBIC) win over section 50 breaching what finance minister promised in 39th GST council meeting

Central Board of Indirect Taxes and Customs i.e., CBIC issued Notification Number 63/2020 – Central Tax dated 25th August 2020 regarding effective date of notification from 01-Sep-2020 with respect to section 100 of the Finance (No.2) Act, 2019 (23 of 2019) which inter alia discusses about levy of interest under section 50 of CGST Act [...

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