CBIC clarifies notification released on interest on net GST liability

Last updated: 26 August 2020 Follow on Google News

The CBIC had released a notification on the 25th of August saying that the interest on net GST liability will have a prospective effect from the 1st of September 2020. This led to confusion among the taxpayers as the notification was in contrary to the announcement made in 39th GST Council Meeting. To clarify on the notification that led to confusion this is what the CBIC has to say :

Interest on delayed payment of GST: CBIC

The Central Board of Indirect Taxes & Customs (CBIC) today clarified that the Notification No. 63/2020-Central Tax dated 25^th August 2020 relating to interest on delayed payment of GST has been issued prospectively due to certain technical limitations. However, it has assured that no recoveries shall be made for the past period as well by the Central and State tax administration in accordance with the decision taken in the 39^th Meeting of GST Council. This will ensure full relief to the taxpayers as decided by the GST Council.

CBIC explanation came in response to an assortment of comments in the social media with respect to Notification dated 25^th August 2020 regarding charging of interest on delayed payment of GST on net liability (the tax liability discharged in cash) w.e.f. 1^st September 2020.

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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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