Interest on late payment of tax | NN 63/2020 CT | GST Press release | GS...

Interest u/s 50 of CGST Act 2017 is payable on gross tax including ITC. This matter was raised in 39th GST council meeting in which it was recommended computation of interest on net tax liability i.e. on that gst which is payable in cash. This recommendation was made retrospectively. Also as per Finance Act 2019 this provision was already incorporated but was made effective from 1-9-2020 vide NN 63/2020 Central Tax. A press release was released on 26-8-2020 which said no recovery shall be made with effect from 1-7-2020 on the basis of gross tax of earlier period i.e. from 1-7-2017.