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TMI BlogCan I avail amnesty to set off interest liable to pay in 2017-18 under section 50X X X X Extracts X X X X X X X X Extracts X X X X ..... Can I avail amnesty to set off interest liable to pay in 2017-18 under section 50 X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 50 applicable. Please help. Reply By Shilpi Jain: The Reply: Section 50 is the provision related to interest but the demand can be made only as per the demand provisions which is 73/74. If its a show cause notice you can take benefit of amnesty scheme Reply By KASTURI SETHI: The Reply: In my view, not eligible. in this scenario, interest cannot be waived in the Amnesty Scheme. It is an altogether different situation. What is the basis ? Reply By Shilpi Jain: The Reply: There was a recent circular which provided that if the demand notice is only for interest and/or penalty also the amnesty scheme will be applicable Reply By Shilpi Jain: The Reply: Generally amnesty schemes are regar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded to be introduced for reducing litigation. In case of ambiguity in relation to applicability of the scheme, one must be guided by this principle and apply. Generally courts and Tribunals do favour the assessee. Reply By Berjeez Bharucha: The Reply: Could you help me with the circular thst states the same. I'd like to follow on with that. Reply By Alkesh Jani: The Reply: Shri In the given facts and circumstances, I am of the view that as you have late filed the returns and also there is late payment of tax, interest is applicable. SCN is not issued under Section 73 or 74, but for the interest under Section 50(1). The SCN issued is just to follow the principles of natural justice, means before taking any adverse action such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as recovery, the person must be put to the notice, which is done here, as the department can invoke Section 75(13) read with Section 79. I am also of the view that demand of interest is with regards to interest not paid under Section 50(1). As no tax is determined under Section 73 and no order is passed under Section 73, the benefit of Section 128A is not available, in your case. It is also to be noted that there is no time limit for recovery of interest. Further, please refer to Instruction No.002/2025-GST dated 07.02.2025 and Circular No. 238/32/2024-GST dated 15th October,2024. Your requested to let me know which portion is applicable to your case. Our expert may correct me, if mistaken. Thanks Reply By KASTURI SETHI: The Reply: S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h.Alkesh Jani Ji, Sir, Thanks a lot for such a comprehensive reply. Interest is automatic. Interest is integral part of tax, if the payment of tax is delayed.----------Orissa High Court in the case reported as 2022 (67) G.S.T.L. 284 (Ori.) ORISSA STEVEDORES LTD. Versus UNION OF INDIA in W.P. (C) Nos. 15862, 15864, 15866 & 15868 of 2020 and I.A. Nos. 8916-8919 of 2022, decided on 12-7-2022 held as under :- &nb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sp; "GST : Liability to pay interest for belated payment of tax under Section 50 of Central Goods and Services Tax Act, 2017 is not only self-imposed but also automatic" AND 2022 (62) G.S.T.L. 6 (Ori.) IN THE HIGH COURT OF ORISSA AT CUTTACK P.K. ORES PVT. LTD. Versus COMMISSIONER OF SALES TAX W.P. (C) No. 10335 of 2022, decided on 6-5-2022 GST : In case self-assessed return tax is paid beyond stipulated time, interest cannot be deposited in instalment. Interest - Instalment payment - Tax deposited as per self-assessed returns beyond stipulated time - Interest is a part of tax and such tax being belated payment in respect of self-assessment, Section 80 of Odisha Goods and Services Tax Act, 2017 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clearly excludes grant of instalment - Section 80 ibid empowers Commissioner to grant instalment only on an application filed electronically in Form GST DRC-20 as prescribed under Rule 158 of Odisha Goods and Services Tax Rules, 2017; this provision, therefore, applies to amounts due other than self-assessed liability shown in any return - Instalment period shall not exceed 24 months - There is, no scope for Commissioner of CT&GST to entertain application for grant of instalment - Thus, interest levied on account of belated deposit of admitted tax as per self-assessed returns cannot be allowed to be deposited in instalment - Section 80 of Odisha Goods and Services Tax Act, 2017 read with Rule 158 of Odisha Goods and Services Tax Rules, 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. [paras 11.1 and 12] Petition dismissed in favour of department Reply By KASTURI SETHI: The Reply: In this case, the party deposited tax along with late fee on dates 12.6.2019 and 1.7.2019, when the plan for the Amnesty Scheme was not even conceived by the Central Govt. Reply By Akash Gadiya: The Reply: Learned colleagues, in my view, this case is not eligible for waiver under section 128A. The answer to the question by the querist lies in Sl. No. 4 of Para 4 of Circular No. 238/32/2024-GST, which reads as under: ...... However, the benefit of waiver of interest and penalty shall not be applicable in the cases where the interest has been demanded on account of delayed filing of returns, or delayed repo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rting of any supply in the return, as such interest is related to demand of interest on self-assessed liability and does not pertain to any demand of tax dues and is directly recoverable under sub-section (12) of section 75. Please feel free to share your views. Reply By KASTURI SETHI: The Reply: Yes, Sir. It is crystal clear. Otherwise also, when we talk of "self-assessment", liability for determination of tax has been imposed on the registered person itself irrespective of the fact whether declared in GSTR-1 or 3 B or GSTR-9. When the liability of due tax has been determined and declared/mentioned in GSTR returns by the tax payer, Section 79 comes into play.. Section 79 starts with "any amount payable". &nbs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p; The term, "self-assessment" cannot be taken lightly. Reply By Shilpi Jain: The Reply: Look at the irony of the amnesty scheme. For assessees who may have hidden the tax liabiltiy and not paid and which would have been identified by the department, waiver of interest is allowed, whereas an assessee who has himself come forward to pay the tax, no benefit of waiver. Though one can consider that the return referred in the circular is GSTR3B and not GSTR-1. Hence the interest arising out of delay in filing GSTR3B or supply which was reported in GSTR3B but reported delayed i.e. supply reported in subsequent month, only in those cases amnesty not applicable. One more aspect is that you have got a notice for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest. Is there any reference of s 73 in that notice? If yes, the answer is easier. X X X X Extracts X X X X X X X X Extracts X X X X
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