Payment of GST in installments | What amounts can be paid in Instalments?

Section 80 of the CGST Act, 2017 read with Rule 158 of the CGST Rules, 2017 is to be referred for Payment of tax and other amounts in installments.  Any amounts due other than the tax self-assessed by him in the returns shall be allowed to be paid in installments provided that amount for which the installment facility is sought shall not be less than Rs.25,000/-.

It is also to be noted here that maximum 24 installments are allowed and if a person defaults in one installment on its due date then the whole balance amount shall become due and payable without any further notice and shall be liable to recovery as well.

Recently in the case of M/S AICH BROTHERS vs. Union of India vide WP(C)/3222/2021 at GAUHATI HC.

Facts: – In this case, the GST registration was canceled by the GST Authorities. Although, the petitioner had paid necessary outstanding as shown by the portal still the registration has not restored. Finally, in a letter dated 27^th May 2021, Authority informed petitioner that the he had failed to pay the interest liability on account of delay in filing GSTR-3B from Oct’18 to Apr’20.

Submissions: – The petitioner replied that No interest liability is shown on the GST portal on account of Interest. The petitioner also submits that due to striking out of GST Registration, he is facing immense difficulty in collecting dues w.r.t Contractual jobs. The authority submitted that although it’s not reflected on GST Portal the amount in the said head is Rs. 147414 (73707*2). The petitioner submits that they ready to pay the Interest and requested to accept the authorities to pay in Instalments due to financial crises.

Decision Held: – There is no dispute on non-payment of Interest. The GST authorities shall permit the petitioner to pay interest liability in installment as a special case due to the covid-19 pandemic. If all dues are cleared, the registration of the petitioner shall be restored immediately.

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