Clarification on No Recovery of Interest on Delayed Payment of GST to be made of Prior Period by CBIC

   After the recent Notification No 63/2020-Central Tax dated 25th August 2020 which relates to interest on delayed payments of GST on Net Tax Liability which will be effective from 01st September 2020, many social media users are commenting on it as during the 39th GST council meet they have said that the this amendment will having a retrospective effect but in the notification it gave a prospective effect from 1st September 2020.

 

The CBIC notified that interest payment on delayed payment of GST would be applicable only on Net Cash Liability after the available Input Tax Credit is utilized.

 

CBIC gave a clarification on these via Press Release [1] made on 26th August 2020 stating that sue to some Technical Limitation they couldn’t give a retrospective effect but there will be no recoveries made by any Central or State Tax officials regarding the prior period as per the 39th GST Council Meet.

 

This will ensure a big sigh of relief that for the prior period to 1st September 2020 there will be no recoveries made in terms of interest by the GST Officials from the Tax payers.

 

-Akash Girish Doshi

 

 

References –

1. h ttps://www.pib.gov.in/PressReleasePage.aspx?PRID=1648751