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TMI BlogInterest payable under Section 50 of CGST/SGST Act for delay in filing of GSTR-3B Returns from July 2017 to March 2019 returnsX X X X Extracts X X X X X X X X Extracts X X X X ..... My client received notice regarding Interest payable under Section 50 of CGST /SGST Act for delay in filing of GSTR-3B Returns from July 2017 to March 2019 returns and in the notice they calculated INTEREST PAYABLE ON CASH SET OFF and also on INTEREST PAYABLE ON ITC SET OFF for the period from July 2017 to March 2019. Please clarify whether we have have to pay interest on ITC Setoff in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... particular month along with Net Tax payable after ITC Setoff. - Reply By PAWAN KUMAR - The Reply = Dear Sir, As per my view, since late fee for delay in filing of GST returns was waived. No other interest waiver was provided. If you have not filed your GSTR-3B returns and also not set-off your liability, Interest will be applicable but return delay filing fee will be waived. - Reply By ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... KASTURI SETHI - The Reply = We debit due tax on the date of filing GSTR 3B . It is not in dispute. When the said return is filed late, the due amount of tax also gets delayed. Govt.has rightly demanded interest on the delayed payment of tax. Interest is to be paid on due tax delayed whether it was paid/set off/debited from Electronic Cash Ledger or from Electronic Credit Ledger. Here is not the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue of payment of interest only on net cash liability. For example; in December, 19 if you have paid whole tax from Electronic Credit Ledger late for three days, you will have to pay interest in cash for three days on this amount of tax also. The department is concerned with the date of setting off liability and that is possible only if you debit the same from your Electronic Cash Ledger or Elec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tronic Credit Ledger. I agree with Sh. Pawan Kumar Ji. There is no waiver for interest. The Govt.waived late fee only. We should not mix the issue of payment of interest on net tax liability in cash with the routine payment of tax. Setting off/debiting is a must. - Reply By SHARAD ANADA - The Reply = As per present provision sec 50 of the CGST Act int is to be paid on gross out put tax liab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ility i.e before setting off your Input tax credit. For EG your out put tax liability is ₹ 1 lakh and your input tax credit is 2 lakh and you have filed your GSTR 3 B late by 3 days than in that case you are liable to pay int @18% pa for 3 days on ₹ 1 lakh. This provision is amended by Finance Act No 2 2019 that int will be payable only on cash portion payable by the taxable per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... son. But the same is not notified yet. - Reply By SHARAD ANADA - The Reply = Also refer Telangana and AP High court decision in the case of Megha Engg and Infra - Reply By KASTURI SETHI - The Reply = Courtesy costs nothing. - Reply By Mahadev R - The Reply = I agree with the views of expert. Based on the law ( Section 50 ) as on today, interest is payable. It is not clear if the intention ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of new proviso (yet to be notified) is to give retrospective or prospective effect. A contention can be made that being beneficial provision it should be retrospective (unless otherwise notified). - Reply By KASTURI SETHI - The Reply = THE FINANCE (NO. 2) ACT, 2019 [Act No. 23 of 2019] 1. Short title and commencement. - (1) This Act may be called the Finance (No. 2) Act, 2019. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) Save as otherwise provided in this Act, - (a) sections 2 to 69 shall be deemed to have come into force on the 1st day of April, 2019; (b) sections 92 to 112 and section 114 shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint. Here we are concerned with Section 100 amending Section 50 of CGST Act . The date o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f enforcement has to be awaited. - Reply By PARALIJAYAPALAN ANILKUMAR - The Reply = Please refer the latest decision by Madras High Court in WP-23360/19 in Refrex Industries LTD = 2020 (2) TMI 794 - MADRAS HIGH COURT . The court held that the notification is clarificatory in nature and hence the amendment is retrospective , liable to pay interest on payment through cash ledger only - Rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly By KASTURI SETHI - The Reply = Still decks are not cleared, the parties are getting letters for recovery of interest on gross amount under Section 79 of CGST Act . The department may challenge decision of Madras High Court in Supreme Court. Every decision is appealable. - Reply By PARALIJAYAPALAN ANILKUMAR - The Reply = AS PER THE RECOMENDATIONS OF 39TH GST COUNCIL MEETINGS THE INTEREST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IS TO BE CHARGED ON NET TAX LIABILITY. PLEASE FIND BELOW.THE COUNCIL DECISION. Recommendations of GST council related to law procedure March 14, 2020 Contents The 39th GST Council met under the Chairmanship of Union Finance Corporate Affairs Minister Smt Nirmala Sitharaman here today . The meeting was also attended by Union Minister of State for Finance Corporate Affairs Shri Anu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rag Thakur besides Finance Ministers of States UTs and seniors officers of the Ministry of Finance. The GST Council has made the following recommendations on Law Procedures changes. Measures for Trade facilitation: Interest for delay in payment of GST to be charged on the net cash tax liability w.e.f. 01.07.2017 (Law to be amended retrospectively). - Reply By KASTURI SETHI - The Rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly = Notification for retrospective amendment is still awaited. - Reply By KASTURI SETHI - The Reply = Keeping in view of health crisis and economic crisis, retrospective amendment of Section 50 may be a pipe dream. Further, let us see which way the winds blow. - Interest payable under Section 50 of CGST/SGST Act for delay in filing of GSTR-3B Returns from July 2017 to March 2019 returns - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Query Started By: - kirankumar bonthalakoti Dated:- 8-2-2020 Goods and Services Tax - GST - Got 12 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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