Goods and Services Tax : Explore the 53rd GST Council's decision on interest applicability under Section 50 of CGST Act and the new GSTR-1A amendment facil...
Goods and Services Tax : Understand GST interest implications: How interest is calculated, legal provisions, recent judgments, and impact on taxpayers' com...
Goods and Services Tax : Explore implications of depositing GST via PMT 06 before filing GSTR-3B. Learn about tax payment deadlines, interest liabilities, ...
Goods and Services Tax : Explore the Madras High Court ruling in Eicher Motor Ltd. v. Superintendent GST, stating no interest on GST if deposited on time, ...
Goods and Services Tax : Explore the Madras High Court's landmark decision (W.P.Nos.16866 & 22013 of 2023) on GST liability. Learn how crediting GST to the...
Goods and Services Tax : In view of the challenges faced by taxpayers in meeting the statutory and regulatory compliances under Goods & Services Tax (GST) ...
Goods and Services Tax : CBIC has issued one GST Instruction, Two IGST Notifications, 6 CGST Notifications and one UTGST Notification on 24th June 2020. No...
Goods and Services Tax : Key outcome of 40TH GST council meeting – The 40th GST COUNCIL met under the chairmanship of Union Minister for Finance & Co...
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...
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 ...
Goods and Services Tax : Explore the Gujarat High Court's judgment on CGST interest under Section 50, clarifying it's payable from deposit to electronic ca...
Goods and Services Tax : Explore the Telangana High Court's judgment on interest under Section 54 of the CGST Act, 2017, for delayed refund of Input Tax Cr...
Goods and Services Tax : Explore the Madras High Court judgment on challenging a bank attachment notice over GST interest liability. Detailed analysis and ...
Goods and Services Tax : Explore the judgment of Punjab & Haryana High Court in SBI Cards vs Union of India case regarding refund claims under CGST Act, in...
Goods and Services Tax : Dive into the case of Larsen & Toubro Ltd. Vs State of West Bengal, where the Calcutta High Court resolves an interest dispute und...
Goods and Services Tax : CBIC Circular No. 192/04/2023-GST provides clarification on charging interest for wrong availment of IGST credit and its reversal ...
Goods and Services Tax : CBIC notifies the provisions of clause (c) of section 110 and section 111 of the Finance Act, 2022. Section 110 of Finance Act, ...
Goods and Services Tax : Govt provides waiver of interest for specified electronic commerce operators for specified tax periods vide Notification No. 08/20...
Goods and Services Tax : Deployment of Interest Calculator in GSTR-3B 1. The new functionality of interest calculator in GSTR-3B is now live on the GST Por...
Goods and Services Tax : GST Portal will now provide system computed interest in GSTR-3B to facilitate taxpayers in self-assessment. Interest will be compu...
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.
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 hands of the recipient i.e. taxpayer would unjustly enrich the revenue which is against the principle of levy of interest.
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.
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 […]
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.
जीएसटी की एक और विवादास्पद अधिसूचना जारी जीएसटी की एक और विवादास्पद अधिसूचना संख्या 63/2020 दिनांक 25 अगस्त 2020 जारी की है जिसके अनुसार जीएसटी में नेट टैक्स पर ब्याज लगाने का प्रावधान अब 1 सितम्बर 2020 से लागू होगा जब कि प्रारम्भ से ही यह प्रावधान ग्रॉस टैक्स पर लगने वाले ब्याज का प्रावधान […]
It is quite obvious that if the notification of CBIC i.e. Notification No. 63/2020 is to be considered as prospective only, the department or the union is accepting that the levy of interest on gross tax liability without deducing the input tax credit to taken from the electronic credit ledger available therein which is amenable to adjustment by the departmental authorities with considering the orders of the various High Courts which stayed the interest on gross levy of tax as unjust and improper.
As per Sec 50 (1) of the CGST Act 2017 Every person who is liable to pay tax in accordance with the provisions of this Act or the rules made there under, but fails to pay the tax or any part thereof to the Government within the period prescribed, shall, for the period for which the tax or any part thereof remains unpaid, pay, on his own, interest at such rate, not exceeding eighteen per cent, as may be notified by the Government, on the recommendation of the Council.
1. Notification No 63/2020 – Central Tax dated 25th August, 2020 – CBIC has issued Notification No 63/2020 – Central Tax dated 25th August, 2020 bringing into effect the provisions of Sec 100 of the Finance Act, 2019, which is reproduced below – Sec 100. In section 50 of the Central Goods and Services Tax […]
Interest on Delayed Payment of Tax – on Gross or Net Tax Liability – Bone of Contention Remains There has been a big controversy that whether interest on delayed payment of tax has to be paid on gross tax liability or net tax liability paid through electronic cash ledger after adjustment of input tax credit? […]
