The interest on late payment would be on the net cash tax liability for the period prior to the amendment i.e., from 01.07.2017 to 31.08.2020.
Section 50 of the CGST Act, 2017— Interest -- The petitioner challenged the notice for rejection of application for refund dated 5th December, 2019 along with corrigendum dated 18th December, 2019 and to direct respondent to refund the amount wrongly forfeited from the pending refund application of the petitioner. The petitioner sought a declaration that the liability to pay interest under Section 50 of the Act should be confined only to the net tax liability and no interest is payable on the available ITC. The petitioner submitted Administrative Instruction dated 18th September, 2020 issued by the CBIC (GST Policy), clarifying to recover interest only on the net cash liability. The court observed that in view of the decision taken by the CBIC, grievance of the petitioner no longer survives.
Held that:-The Hon’ble High Court disposed the petition in accordance with the Administrative Instruction dated 18th September, 2020.
The interest on late payment would be on the net cash tax liability for the period prior to the amendment i.e., from 01.07.2017 to 31.08.2020.
Section 50 of the CGST Act, 2017— Interest -- The petitioner challenged the notice for rejection of application for refund dated 5th December, 2019 along with corrigendum dated 18th December, 2019 and to direct respondent to refund the amount wrongly forfeited from the pending refund application of the petitioner. The petitioner sought a declaration that the liability to pay interest under Section 50 of the Act should be confined only to the net tax liability and no interest is payable on the available ITC. The petitioner submitted Administrative Instruction dated 18th September, 2020 issued by the CBIC (GST Policy), clarifying to recover interest only on the net cash liability. The court observed that in view of the decision taken by the CBIC, grievance of the petitioner no longer survives.
Held that:-The Hon’ble High Court disposed the petition in accordance with the Administrative Instruction dated 18th September, 2020.