CBIC clarifies regarding payment of GST dues during March 2021

Last updated: 22 March 2021

Save Share

Quick Summary

The Central Board of Indirect Taxes and Customs (CBIC) has issued a clarification regarding Goods and Services Tax (GST) payments for March 2021. Contrary to some media reports, no instructions have been given to field officers to compel taxpayers to pay their dues in cash to meet revenue targets. Taxpayers are permitted to use their available Input Tax Credit (ITC) to settle their GST liabilities for the final month of the financial year.

Taxpayers are free to utilise Input Tax Credit available in their credit ledger as permissible by law to discharge their GST due for March month. Read the official press note released by CBIC as follows:

Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes & Customs

New Delhi, 20th March, 2021

Unconfirmed reports have appeared in certain sections of the media that some GST officers are using unauthorized communication means such as phone calls, WhatsApp and messages asking taxpayers to discharge 'maximum tax liability' in 'cash' in order to ensure that targets for revenue collection from GST for the financial year are met.

GST Payment Clarification: Use Input Tax Credit

It is to clarify that neither the Government nor the Central Board of Indirect Taxes and Customs (CBIC) have issued any such instructions to their field formations. As such, taxpayers are free to utilize the Input Tax Credit available in their credit ledger, as permissible in law, to discharge their GST dues for the month of March, 2021 - the last month of this financial year.

FAQ :

The CBIC has clarified that taxpayers are free to use their Input Tax Credit (ITC) to pay their GST dues for March 2021, as permitted by law.

No, the Government and CBIC have not issued any instructions to their field formations asking taxpayers to discharge their GST liability in cash.

The clarification is being issued because unconfirmed media reports suggested that some GST officers were using unauthorised means to ask taxpayers to pay in cash to meet financial year revenue targets.

Yes, taxpayers are free to utilise the Input Tax Credit available in their credit ledger to discharge their GST dues for March 2021.

Yes, March 2021 is the last month of the financial year, making revenue collection targets important.

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!

14196 Views Comment Share GST Report

News posted by

CCI News Desk

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.

Click here to Login and post comments OR