Interest on delayed GST will be now calculated on “Net tax liability”

Ad Blocker Detected

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker.

As we all know , Businesses, other than those who are already under or opt for composition scheme, registered under goods and services tax (GST) have to file returns (GSTR-1) showing tax liability by 11th of following month and pay taxes by filing GSTR-3B by 20th of ever month.

As per the latest report of Central Board of Indirect Taxes and Customs (CBIC) , Interest payable on delayed payment of GST will be calculated on net tax liability and the law has been amended accordingly. Department has already started procedures to collect ₹46,000 crores of unpaid interest.

The current situation of permitting interest calculation on delayed GST payment on the basis of gross tax liability has been upheld in the Telangana High Court decision dated 18th April , 2019.

“Such amendment will be made prospectively. The states of Telangana and West Bengal are in the process of amending their state GST Acts. After the process of amendment is complete, the changed provisions can be put in operation for the entire country,” CBIC said.

Leave a Reply

Job Alerts  1Jobs Alerts 2