Interest on GST

Net liability

Raja P M , please clarify with proper provision,rule,section.

As per section 50(1) of cgst rules, 2017, before the amendment, interest has to be paid on the gross liability, i.e., on both ITC component and cash component.  In terms of the public demand, the gst council in its meeting has decided to accept the request for payment of interest on cash component only.  Accordingly, the amendment was included in finance bill 2019, under section 100 and has become act in august 2019.  As central gst act.  is having equal state gst act in every act, it is important that every state has to pass the amendment before it is implemented in both state and center level.  As on date, telungana and west bengal has to be pass the same.  Hence, it will be notified sooner or later.  In the meantime various high court judgements both in favour and against have come, leaving room for clarity.  Hope, this will be sorted out soon.

ARS Bharathi sir, what should we do in case received a notice from SGST for interest on gross liability