GST Interest

Order imposing interest on gross GST amount quashed for Violation of Principle of Natural Justice

Goods and Services Tax - Manshi Automobiles Vs Union of India (Patna High Court) We form an opinion that the order is bad in law. This we say so, for two reasons- (a) violation of principles of natural justice, i.e. Fair opportunity of hearing. No sufficient time was afforded to the petitioner to represent his case; (b) order passed ex […]...

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Interest under Section 50 of CGST Act 2017

Goods and Services Tax - PROVISIONS RELATED TO INTEREST UNDER GST ACT 2017  Case Sr. No. Section of CGST Act. 2017 Particulars Rate of Interest Interest payable/paid by RP 1. 50(1) Not Deposit/Short deposit within prescribed time under the GST Act. 2017 18% 2. 50(3) Claim of Wrong/undo ITC or Short showing Output liabilities u/s section 42(10) and 43(10) 24% [&h...

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Provisions levying interest under GST Act are incomplete & ineffective

Goods and Services Tax - The provisions for levying interest under GST Act are incomplete and hence ineffective. Here we will discuss on the provisions laid down under GST Act for levying interest and its inapplicability as on date. Section 50 of the Goods and Service Tax Act deals with provision for levying interest. Interest can be levied at 18% […]...

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Battle of levy of Interest on reversal of input tax credit wrongly availed

Goods and Services Tax - Recently, many taxpayers have received notices from the GST authorities demanding interest on subsequent reversal of input tax credit (‘ITC’) wrongly availed by them. The said demands are generally pertaining to initial years of GST wherein the lawmakers and taxpayers, both were evolving to adopt the newly introduced statute. Due to t...

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Interest Liability In Case of Timely Payment & Late Filing of GSTR-3B

Goods and Services Tax - During the Inception period of GST era due to various reason like technical glitches in the portal, heavy load on the portal, assesses dependency on the portal’s offline utility, novel procedure to file the return etc. many assesses filled GSTR-3B belatedly when the portal resumed, or technical issue resolved or however they have deposi...

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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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GST: Interest cannot be demanded when amount of tax was available in credit ledger

Tvl. Kumaran Filaments (P) Ltd. Vs Commissioner of Central GST and Central Excise (Madras High Court) - Tvl. Kumaran Filaments (P) Ltd. Vs Commissioner of Central GST and Central Excise (Madras High Court) Insofar as the due of interest is concerned, the factual matrix is that, the entire amount of Rs.50,21,080/- was very much available in the credit of the petitioner for the whole period, therefore, ...

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Interest payable on belated payment of GST: Madras High Court

Srinivasa Stampings Vs Superintendent of GST and Central Excise Hosur (Madras High Court) - Srinivasa Stampings Vs Superintendent of GST and Central Excise (Madras High Court) Interest has been demanded on the net tax liability of the petitioner on account of belated payment of tax during the aforesaid period under Section 50(1) of the CGST Act, 2017. Since tax was paid by the petitioner b...

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As per principal provision of Section 56 of CGST Act, interest is payable @ 6% & not 9%

Union Of India & Ors. Vs Willowood Chemicals Pvt. Ltd. (Supreme Court of India) - Union Of India & Ors. Vs Willowood Chemicals Pvt. Ltd. (Supreme Court of India) Facts- M/s. Willowood Chemicals Pvt. Ltd. submitting that said Writ Petitioner was entitled on the basis of Section 16 of the IGST Act read with Section 54 of the CGST Act for compensation in receipt of delayed payme...

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7% statutory Interest payable on delayed GST Refund

SNG Impex Through Proprietor Satya Narayan Gupt Vs Principal Commissioner of Customs (Gujarat High Court) - SNG Impex Through Proprietor Satya Narayan Gupt Vs Principal Commissioner of Customs (Gujarat High Court) At the outset, Mr. Choudhary, the learned counsel submitted that during the pendency of the present writ application, the refund of IGST of Rs.7,69,093/- has been sanctioned and paid to the writ...

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GST interest liability U/s. 50 cannot be raised without initiating any adjudication proceeding if Assessee raises dispute

Narsingh Ispat Limited Vs Union of India (Jharkhand High Court) - Narsingh Ispat Limited Vs Union of India (Jharkhand High Court) Whether liability of interest under section 50 of the GST Act could be raised without initiating any adjudication proceeding either under section 73 or 74 of JGST Act in the event Assessee raising a dispute towards liability of interest...

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Interest calculator in GSTR-3B is now live on GST Portal

Press Release No. 520 - (26/01/2022) - Deployment of Interest Calculator in GSTR-3B 1. The new functionality of interest calculator in GSTR-3B is now live on the GST Poral. 2. This functionality will facilitate & assist the taxpayers in doing self-assessment. This functionality will arrive at the system computed interest on the basis...

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Upcoming functionality – Interest Calculator in GSTR-3B

Press Release No. 519 - (08/01/2022) - GST Portal will now provide system computed interest in GSTR-3B to facilitate taxpayers in self-assessment. Interest will be computed in accordance with the Section-50 of the CGST Act, 2017 and proviso thereof, as amended. Interest on liability for the present period shall be computed only on the po...

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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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Recent Posts in "GST Interest"

GST: Interest cannot be demanded when amount of tax was available in credit ledger

Tvl. Kumaran Filaments (P) Ltd. Vs Commissioner of Central GST and Central Excise (Madras High Court)

Tvl. Kumaran Filaments (P) Ltd. Vs Commissioner of Central GST and Central Excise (Madras High Court) Insofar as the due of interest is concerned, the factual matrix is that, the entire amount of Rs.50,21,080/- was very much available in the credit of the petitioner for the whole period, therefore, if at all, the same is […]...

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Interest payable on belated payment of GST: Madras High Court

Srinivasa Stampings Vs Superintendent of GST and Central Excise Hosur (Madras High Court)

Srinivasa Stampings Vs Superintendent of GST and Central Excise (Madras High Court) Interest has been demanded on the net tax liability of the petitioner on account of belated payment of tax during the aforesaid period under Section 50(1) of the CGST Act, 2017. Since tax was paid by the petitioner belatedly, petitioner is liable to [&hell...

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As per principal provision of Section 56 of CGST Act, interest is payable @ 6% & not 9%

Union Of India & Ors. Vs Willowood Chemicals Pvt. Ltd. (Supreme Court of India)

Union Of India & Ors. Vs Willowood Chemicals Pvt. Ltd. (Supreme Court of India) Facts- M/s. Willowood Chemicals Pvt. Ltd. submitting that said Writ Petitioner was entitled on the basis of Section 16 of the IGST Act read with Section 54 of the CGST Act for compensation in receipt of delayed payment as detailed in […]...

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7% statutory Interest payable on delayed GST Refund

SNG Impex Through Proprietor Satya Narayan Gupt Vs Principal Commissioner of Customs (Gujarat High Court)

SNG Impex Through Proprietor Satya Narayan Gupt Vs Principal Commissioner of Customs (Gujarat High Court) At the outset, Mr. Choudhary, the learned counsel submitted that during the pendency of the present writ application, the refund of IGST of Rs.7,69,093/- has been sanctioned and paid to the writ applicant by way of a cheque. However, ...

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GST interest liability U/s. 50 cannot be raised without initiating any adjudication proceeding if Assessee raises dispute

Narsingh Ispat Limited Vs Union of India (Jharkhand High Court)

Narsingh Ispat Limited Vs Union of India (Jharkhand High Court) Whether liability of interest under section 50 of the GST Act could be raised without initiating any adjudication proceeding either under section 73 or 74 of JGST Act in the event Assessee raising a dispute towards liability of interest. It has been held that if […]...

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GST: Interest cannot be recovered without initiation & completion of adjudication proceedings

R.K. Transport Private Limited Vs Union of India (Jharkhand High Court)

R.K. Transport Private Limited Vs Union of India (Jharkhand High Court) Recovery proceedings under Section 79 of the CGST Act cannot be initiated for recovery of interest under Section 50 of the Act without initiation and completion of the adjudication proceedings under the Act The issue at hand is whether interest liability under Section...

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Order imposing interest on gross GST amount quashed for Violation of Principle of Natural Justice

Manshi Automobiles Vs Union of India (Patna High Court)

Manshi Automobiles Vs Union of India (Patna High Court) We form an opinion that the order is bad in law. This we say so, for two reasons- (a) violation of principles of natural justice, i.e. Fair opportunity of hearing. No sufficient time was afforded to the petitioner to represent his case; (b) order passed ex […]...

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Interest under Section 50 of CGST Act 2017

PROVISIONS RELATED TO INTEREST UNDER GST ACT 2017  Case Sr. No. Section of CGST Act. 2017 Particulars Rate of Interest Interest payable/paid by RP 1. 50(1) Not Deposit/Short deposit within prescribed time under the GST Act. 2017 18% 2. 50(3) Claim of Wrong/undo ITC or Short showing Output liabilities u/s section 42(10) and 43(10) 24% [&h...

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Interest calculator in GSTR-3B is now live on GST Portal

Press Release No. 520 26/01/2022

Deployment of Interest Calculator in GSTR-3B 1. The new functionality of interest calculator in GSTR-3B is now live on the GST Poral. 2. This functionality will facilitate & assist the taxpayers in doing self-assessment. This functionality will arrive at the system computed interest on the basis of the tax liability values declared by...

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Upcoming functionality – Interest Calculator in GSTR-3B

Press Release No. 519 08/01/2022

GST Portal will now provide system computed interest in GSTR-3B to facilitate taxpayers in self-assessment. Interest will be computed in accordance with the Section-50 of the CGST Act, 2017 and proviso thereof, as amended. Interest on liability for the present period shall be computed only on the portion of liability paid by debiting the ...

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