Interest u/s 50

This discussion clarifies the confusion surrounding GST interest under Section 50. While the Act technically states interest is on gross liability, the 39th GST Council meeting in March 2020 clarified it should be on net tax liability. However, the proviso to Section 50(1) enabling this is not yet notified. High Court judgments suggest it should be on gross liability, but for practical purposes, especially with smaller amounts, calculating on net liability is often considered.