PAYMENT OF TAX AND OTHER AMOUNT IN INSTALMENTS - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

7. PAYMENT OF TAX AND OTHER AMOUNT IN INSTALMENTS (I) As per Section 80 of the CGST Act, 2017, if a taxpayer makes an application for payment of dues of tax and other amount, the Pr. Commissioner/Commissioner may extend the time for payment or allow payment of any amount due under the CGST Act, 2017 other than the self-assessed liability amount, in monthly instalments not exceeding twenty-four, subject to payment of interest under Section 50 and subject to such conditions and limitations as may be prescribed. (II) If there is default in payment of any one instalment on its due date then the whole outstanding balance payable on such date shall become due and payable forthwith and will be liable for recovery without any further notice. (III) Rule 158 of the CGST Rules, 2017 lays down the conditions and limitation for exercising the power to allow payment of tax and other amounts in instalment. (IV) The taxpayer has to file an application electronically in FORM GST DRC- 20 , seeking extension of time for the payment of taxes or any amount due under the CGST Act, 2017 or for allowing payment of such taxes or amount in instalments. (V) The Commissioner shall call for a report from the jurisdictional officer about the financial ability of the taxable person to pay the said amount. (VI) If the application filed by the taxpayer is found proper and legally acceptable and the report of the jurisdictional officer on financial ability is satisfactory, the Commissioner may issue an order in FORM GST DRC- 21 , allowing the taxable person further time to make payment or to pay the amount in monthly instalments, not exceeding twenty-four, as he may deem fit. (VII) The above said facility of deferred payment of dues or payment of dues in monthly installments, shall not be allowed (a) if the taxpayer has defaulted on the payment of any amount due, for which the recovery process is on; (b) the taxable person has not been allowed to make payment in instalments in the preceding financial year; (c) the amount for which instalment facility is sought is less than twenty-five thousand rupees.