Interest on Late payment of GST

This query is : Resolved

Naveen Kumar C D (Querist)
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28 February 2020 Hi,

we have received a GST demand of interests for delayed payment, in this notice they are demanding to pay interest on gross value as per section 50 of CGST act, 2017 within 15 days of receipt of this notice.

as per new amendment of Interest on delayed payment , whether we have to pay gross value or net value, please suggest.

CA Anita Bhadra

CA Anita Bhadra (Expert)
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28 February 2020 The interest issue is still debatable. There are contradictory judgments, council decisions, amendments, etc. Experts are of the opinion that interest is to be paid on the net amount only.

Following is the link of a very well articulated reply of such notices/ demands with the relevant facts:-
https://taxguru.in/goods-and-service-tax/interest-gross-gst-section-501-model-detailed-reply.html/comment-page-1/?unapproved=2095552&moderation-hash=49ff17e768b422bc9260121f4e03651a#comment-2095552

Spurto Consultancy Services

Spurto Consultancy Services (Expert)
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28 February 2020 The new amendment is yet to be incorporated in the relevant Act because the interest issue is still debatable.
Further the day amendment becomes effective, it may be prospective in nature and not retrospective.
Hence, for the time being, interest shall be calculated on gross liability and not net liability.