Interest in GST on late payment to be levied on net liability CBIC Notifies:

Central Board of Indirect Taxes and Customs (CBIC) notified the interest on late GST payments would be applicable only on net cash tax liability after the deduction of the available input tax credits. This is applicable w.e.f. from 1st September 2020.

The much awaited Amendment to Section 50 of the CGST Act, 2017 (levy of interest on delayed payment of tax payable only in cash and not on ITC availed) is finally being made effective from 01/09/2020.

However, this notification is applicable w.e.f 1st September 2020  i.e Interest for delay in payment of GST to be charged on the Net Cash Tax Liability is effective from 1st September 2020. So there is still no clarification for cases falling before 01 September 2020.

This Notification is effective wef 01/09/2020 vide Notification No. 63/2020 Central Tax

Here is complete Text of the Notification:

MINISTRY OF FINANCE
(Department of Revenue)
(Central Board of Indirect Taxes and Customs)
NOTIFICATION

New Delhi, the 25th August, 2020
No. 63/2020–Central Tax

G.S.R. 527(E).—In exercise of the powers conferred by sub-section (2) of section 1 of the Finance (No. 2) Act, 2019 (23 of 2019), the Central Government hereby appoints the 1st day of September, 2020, as the date on which the provisions of section 100 of the Finance (No. 2) Act, 2019 (23 of 2019), shall come into force.

[F. No. 20/06/09/2019-GST]
PRAMOD KUMAR, Director

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