Interest on delayed GST payment to be charged on Net tax liability

Interest on delayed GST payment to be charged on Net tax liability As per recent news press release by CBIC, It has been clarified that, Interest on delayed GST payment will be charged on net tax basis. As per the release, current GST law, permits, calculation of interest on GST on Gross Tax basis and this position was upheld by Telengana High Court as well. The Central Government and several State Governments, on the recommendations of GST Council, have amended their respective CGST/SGST Acts to charge interest on delayed GST payment on the basis of net tax liability, but this amendment will be made prospectively. https://twitter.com/cbic_india/status/1228396314225860608s=20 The changed provisions can be put in operation for the entire country once amendment takes place. After amendment, below mentioned proviso will be inserted in section 50 "Provided that the interest on tax payable in respect of supplies made during a tax period and declared in the return for the said period furnished after the due date in accordance with the provisions of section 39, except where such return is furnished after commencement of any proceedings under section 73 or section 74 in respect of the said period, shall be levied on that portion of the tax that is paid by debiting the electronic cash ledger. "