Interest Calculation u/s 50 of CGST Act

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..... Interest Calculation u/s 50 of CGST Act
Query (Issue) Started By: - PANKAJ KUMAR Dated:- 25-12-2018 Last Reply Date:- 27-12-2018 Goods and Services Tax - GST
Got 6 Replies
GST
Hi.. We had liability for the month of July 2018 ₹ 50 Lakh and CENVAT of ₹ 45 Lakh, net liability comes to ₹ 5 lakh. my query is on which amount we have to pay interest u/s 50 of CGST act. We .....

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..... have to pay interest on ₹ 50 Lakh as liability still not set off at the portal? Reply By KASTURI SETHI: The Reply: You are required to pay interest on RS.50 lakhs as Liability was not set off and not any amount was credited into Govt . Account. Reply By PAWAN KUMAR: The Reply: rightly explained by kasturi sir. on total amount of rs. 50 lakh, interest is payable. Reply By YAGAY andSUN: .....

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..... The Reply: We endorse the views of our Experts. Reply By Mahadev R: The Reply: Conservative view is to pay on full 50 lakhs. However, the option of paying interest only on ₹ 5 lakh could be considered now. There is also proposal to amend the law to change the provision to levy interest only on balance amount. Future decisions could help us till department identifies this. Reply By KASTUR .....

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..... I SETHI: The Reply: In such a situation, when notification is issued, it will be prospective and not retrospective. It will take time as such amendment may cause a huge revenue loss to Govt. It will have many repercussions. Let us wait for the issuance of notification. Reply By Ganeshan Kalyani: The Reply: Interest is payable on fifty lac because unless the liability is adjusted against the se .....

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..... t off in the electronic credit ledger the liable is considered to be unpaid. Obviously there is scope to argue that having ITC balance in the ledger and not allowed to consider for the purpose of arriving at payment of interest on delayed payment. Therefore, in the GST council meeting held on 22nd December, it is recommended that available ITC shall be considered incase of payment is delayed and i .....

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..... nterest is triggered. However , the notification giving effect to the recommendation is yet to be published.
Discussion Forum - Knowledge Sharing .....

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