GST Interest

Analysis of ‘Interest’ Under GST Law

Goods and Services Tax - On reading of the foregoing provisions, it emerges that section 50(1) has applicability in situation i) where tax is liable to be paid and ii) such person has failed to pay either full or part thereof. It further emerges that Interest shall be paid for the default period i.e for the period for which the tax or any part thereof remains unp...

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GST: Relevant date for refund of interest paid on gross tax liability

Goods and Services Tax - By virtue of decision taken in 43rd GST Council Meeting, Notification No. 16/2021 – Central Tax dated 1st June, 2021 was issued under GST law to state that interest under Section 50 of the CGST Act, 2017 would be applicable only on net tax liability with retrospective effect from July 1, 2017. With this notification […]...

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GST Return Due Date Extension & Relief Measures 2.0

Goods and Services Tax - In response to outbreak of Covid-19 pandemic, the government has issued various notifications ranging from Notification No. 07/2021-Central Tax dated 27.04.2021 to Notification No. 27/2021-Central Tax dated 01.06.2021 extending certain due dates under GST and granting relief to taxpayers in terms of waiver of interest cost on delayed paym...

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Refund arising from payment of interest on Gross Tax Liability after retrospective amendment of interest on Net Tax Liability

Goods and Services Tax - Aditya Singhania Refund arising from payment of interest on Gross Tax Liability after retrospective amendment of interest on Net Tax Liability The issue of charging interest on net tax liability has been a long-driven issue which was initially recommended by the Law Committee to make amendment in section 50 of the CGST Act, 2017 way [&hel...

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Gist of CGST Notifications dated 01st June 2021

Goods and Services Tax - Notification No. 16/2021 – Central Tax Dated 01/06/2021: Appoints 01.06.2021 as the date on which the provisions of section 112 of the Finance Act, 2021 shall come into force – Retrospective amendment in Section 50 of the CGST Act to provide interest on net cash basis w.e.f. 01.07.2017. However, persons who have already paid interest...

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Relief measures for taxpayers under GST in view of COVID-19

Goods and Services Tax - In view of the challenges faced by taxpayers in meeting the statutory and regulatory compliances under Goods & Services Tax (GST) law due to the outbreak of the second wave of COVID-19 pandemic, the Government has issued notifications, all dated 1st May, 2021, providing various relief measures for taxpayers. These measures are explained b...

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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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Hear plea on Interest Charging for delayed GST Payment: HC to GST Dept

S R & Sons Vs Assistant Commissioner (ST) (FAC) (Madras High Court) - S R & Sons Vs Assistant Commissioner (ST) (FAC) (Madras High Court) This Court is of the considered opinion that the petitioner has emphatically stated that he has no grievance against the order in original dated 11.11.2020 and his grievance is against the charging of interest under Section 50 o...

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Notice for recovery under GST must be issued in Form GST DRC 07

Rajkamal Builder Infrastructure Private Limited Vs Union of India (Gujarat High Court) - Rajkamal Builder Infrastructure Private Limited Vs Union of India (Gujarat High Court) Plain reading of the Rule 142(1)(a) indicates that Form GST DRC 01 can be served by the proper officer along with the notice issued under Section 52 or Section 73 or Section 74 or Section 76 or Section 122 or Sect...

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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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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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Late GST return : Interest rate lowered for March to May 2021

Notification No. 18/2021-Central Tax [G.S.R.362(E)] - (01/06/2021) - CBIC provides relief by lowering of interest rate for a specified time for tax periods March, 2021 to May, 2021  for late filing of monthly/quarterly returns in Form GSTR-3B or PMT-06 challans as well as for late filing of statement in Form CMP-08 by the composition tax payers vide Notification No....

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Revised Section 50 GST interest Provisions notified w.e.f. 01.06.2021

Notification No. 16/2021-Central Tax [S.O. 2129(E)] - (01/06/2021) - Section 112 of the Finance Act providing for retrospective amendment in Section 50 of the CGST Act related to levy of interest has been notified w.e.f. 01.06.2021 vide Notification No. 16/2021 – Central Tax-  Dated 1st June, 2021. Government of India Ministry of Finance (Department of Revenue) Ce...

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UTGST | Late GST return | Interest rate lowered for March to May 2021

Notification No. 02/2021–Union Territory Tax [G.S.R. 373(E)] - (01/06/2021) - CBIC provides relief by lowering of interest rate for a specified time for tax periods March, 2021 to May, 2021 vide Notification No. 02/2021–Union Territory Tax dated 1st June, 2021 to give effect to Recommendations of 43rd GST Council Meeting. Government of India Ministry of Finance (Department ...

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IGST | Late GST return | Interest rate lowered for March to May 2021

Notification No. 02/2021–Integrated Tax [G.S.R. 372(E)] - (01/06/2021) - Seeks to provide relief by lowering of interest rate for a specified time for tax periods March, 2021 to May, 2021 vide Notification No. 02/2021–Integrated Tax Dated 1st June, 2021 to give effect to Recommendations of 43rd GST Council Meeting. Government of India Ministry of Finance (Department o...

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GST: Chart of Waiver of interest & late fee for March & April, 2021

Advisory No. 468 - (04/05/2021) - Waiver of interest and late fee to normal taxpayers (filing return on monthly or quarterly basis) and composition taxpayers, for the tax periods of March and April, 2021 Government has granted waiver from payment of interest and/or late fee to normal (Monthly / Quarterly) & composition taxpayers...

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Recent Posts in "GST Interest"

Hear plea on Interest Charging for delayed GST Payment: HC to GST Dept

S R & Sons Vs Assistant Commissioner (ST) (FAC) (Madras High Court)

S R & Sons Vs Assistant Commissioner (ST) (FAC) (Madras High Court) This Court is of the considered opinion that the petitioner has emphatically stated that he has no grievance against the order in original dated 11.11.2020 and his grievance is against the charging of interest under Section 50 of the Central Goods and Services [&helli...

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Analysis of ‘Interest’ Under GST Law

On reading of the foregoing provisions, it emerges that section 50(1) has applicability in situation i) where tax is liable to be paid and ii) such person has failed to pay either full or part thereof. It further emerges that Interest shall be paid for the default period i.e for the period for which the tax or any part thereof remains unp...

Read More

GST: Relevant date for refund of interest paid on gross tax liability

By virtue of decision taken in 43rd GST Council Meeting, Notification No. 16/2021 – Central Tax dated 1st June, 2021 was issued under GST law to state that interest under Section 50 of the CGST Act, 2017 would be applicable only on net tax liability with retrospective effect from July 1, 2017. With this notification […]...

Read More

GST Return Due Date Extension & Relief Measures 2.0

In response to outbreak of Covid-19 pandemic, the government has issued various notifications ranging from Notification No. 07/2021-Central Tax dated 27.04.2021 to Notification No. 27/2021-Central Tax dated 01.06.2021 extending certain due dates under GST and granting relief to taxpayers in terms of waiver of interest cost on delayed paym...

Read More

Refund arising from payment of interest on Gross Tax Liability after retrospective amendment of interest on Net Tax Liability

Aditya Singhania Refund arising from payment of interest on Gross Tax Liability after retrospective amendment of interest on Net Tax Liability The issue of charging interest on net tax liability has been a long-driven issue which was initially recommended by the Law Committee to make amendment in section 50 of the CGST Act, 2017 way [&hel...

Read More

Gist of CGST Notifications dated 01st June 2021

Notification No. 16/2021 – Central Tax Dated 01/06/2021: Appoints 01.06.2021 as the date on which the provisions of section 112 of the Finance Act, 2021 shall come into force – Retrospective amendment in Section 50 of the CGST Act to provide interest on net cash basis w.e.f. 01.07.2017. However, persons who have already paid interest...

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Notifications implmenting 43rd GST Council Meeting decisions

Various notifications have been issued by the CBIC today to give effect to the recommendations of the 43rd GST Council meeting. Synopsis of the same is as follows: ♦ Notification No. 16/2021 – Central Tax Dated 01/06/2021: Section 112 of the Finance Act providing for retrospective amendment in Section 50 of the CGST Act related [&hell...

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Late GST return : Interest rate lowered for March to May 2021

Notification No. 18/2021-Central Tax [G.S.R.362(E)] 01/06/2021

CBIC provides relief by lowering of interest rate for a specified time for tax periods March, 2021 to May, 2021  for late filing of monthly/quarterly returns in Form GSTR-3B or PMT-06 challans as well as for late filing of statement in Form CMP-08 by the composition tax payers vide Notification No. 18/2021 – Central Tax-  […]...

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Revised Section 50 GST interest Provisions notified w.e.f. 01.06.2021

Notification No. 16/2021-Central Tax [S.O. 2129(E)] 01/06/2021

Section 112 of the Finance Act providing for retrospective amendment in Section 50 of the CGST Act related to levy of interest has been notified w.e.f. 01.06.2021 vide Notification No. 16/2021 – Central Tax-  Dated 1st June, 2021. Government of India Ministry of Finance (Department of Revenue) Central Board of Indirect Taxes and Custom...

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UTGST | Late GST return | Interest rate lowered for March to May 2021

Notification No. 02/2021–Union Territory Tax [G.S.R. 373(E)] 01/06/2021

CBIC provides relief by lowering of interest rate for a specified time for tax periods March, 2021 to May, 2021 vide Notification No. 02/2021–Union Territory Tax dated 1st June, 2021 to give effect to Recommendations of 43rd GST Council Meeting. Government of India Ministry of Finance (Department of Revenue) Central Board of Indirect Ta...

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