16 January 2019
Dear Sir/Madam, In 31st GST council meeting, it is decided to make Legislative changes in Section 50 of CGST Act, such that , Interest will now be calculated on the Net tax liability arrived after deducting Input tax credit utilised for the month.That is Interest is calculated only on amount need to pay tax from electronic cash ledger. My question - is this amendment applicable retrospectively from Jul-2017 or prospectively ? because dept is demanding interest from our company for late filing of returns in initial months.Actually, we need not pay any amount from cash ledger, we have enough amount in credit ledger. But department is demanding of Gross liability. Thanks
16 January 2019
In-Principle approval given for Law Amendments of Sec 50 of CGST Act during 31stMeeting of the GST Council December 22, 2018 In a press release ,dt 22 Dec 2018 it has been stated that The recommendations of the Council will be made effective only after the necessary amendments in the GST Acts are carried out..
The CBIC has issued Notification related to recommendations made during 31st Meeting of the GST Council from 67/2018 to 79/2018 . Notification regarding amendment of sec 50 has not yet issued by CBIC , . Applicability of the provision ( retrospective or not ) can be ascertain only after notification . Till date department will be following the existing provision only .
CAclubindia
