Interest on delay in GST filing/payment

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A user received a notice for 18% interest on late GST filings from August 2017 to January 2018 and is seeking advice on how to request a waiver from the department. The response indicates that under Section 50 of the GST Act, the liability to pay interest is automatic, but it can be paid on a 'net cash basis'. The user is seeking clarification on what 'net cash basis' means in this context.

Praveenveldhi

Praveenveldhi (Querist)
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24 August 2022 Dear Expert,

We have received a notice to pay interest@18% on GST late filing/payment for the periods Aug'17,Sep'17,Oct'17,Nov17,Dec,17 and Jan'18.. How can we request the department to waive off such interest since the period began as soon as the GST Act was implemented.

Kindly do the needful

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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24 August 2022 There is no recourse available as liability to pay interest under section 50 is automatic. only thing is that you need to pay only on net cash basis.

Praveenveldhi

Praveenveldhi (Querist)
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24 August 2022 Net cash basis means sir ??

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