GST

Interest on delayed payment of GST payable on net tax liability from 1st June 2021

Interest on delayed payment of GST to be paid on net tax liability after adjusting credit in ECL from 1st June 2021

Clause 112 of the Finance Act 2021 amended Section 50 of the CGST Act 2017 related to Interest on delayed payment of tax.

The amendment provided that interest will only be paid on the net tax liability, after balancing the credit in the electronic credit ledger, given that the person has not been issued any show-cause notice under section 73 or 74.

The CBIC / Ministry of Finance has issued Notification No. 16/2021 –Central Tax notifying 1st day of June, 2021, as the date on which the provisions of the said amendment shall come into force.

Download Notification Click Here >>

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