Amendment of sec 50 of CGST ACT

This query is : Resolved

SIKANDAR BANKAR (Querist)
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23 September 2019 Sir one of my friend's GST REGISTRATION is cancelled by department , on August bcoz he has not filed the return since May 2018, but now on 20 th SEP 2019, he filed all GST returns from May 2018 to August 2019 along with late fee, and filed application for revocation of cancellation of registration, but now tax authority is asking for payment of interest @ 18%. for late payment of tax liability, as he has paid GST TAX BY UTILISIING THE ITC for the month of March 2019, I want to know whether he has to pay interest or not, as amendment of sec 50 of CGST ACT is said interest is to be paid on net tax liability , ie tax paid by cash. PLEASE please clarify on this regard

CA Anita Bhadra

CA Anita Bhadra (Expert)
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24 September 2019 Yes it is true that The Union Budget 2019 presented by Hon’ble Finance Minister Mrs. Sitharaman on 5th July 2019 has inserted a Proviso to remove the doubt over the interest for late payment of GST that whether the interest would be charged & payable on ‘Gross Tax Liability’ or only on ‘Net Tax Liability’.

But the point is that the new provision will be effective w.e.f which date ?

Amendments carried out in the Finance Bill, 2019 will come into effect from the date when the same will be notified, concurrently with the corresponding amendments to the Acts passed earlier by the States & Union territories with legislature.