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For the period 1 st July, 2017 to 31st August, 2020 field formations have been instructed to recover interest only on the net cash liability

Section 50 of the CGST Act — Interest – The petitioner prayed for issuing direction for calling the records pertaining to the Petitioners case and after going into the validity and legality thereof quash impugned letter dated 19.02.2020; (b) direction for calling for the records pertaining to the Petitioners case and after going into the validity and legality thereof and hold that interest would be payable only on the cash component of the liability under section 50 of the Act, 2017.The respondent submitted that as per the administrative instructions issued by the CBIC to implement the decision of the GST council, it has been decided that for the period 1 st July, 2017 to 31st August, 2020 field formations have been instructed to recover interest only on the net cash liability. In those cases where show cause notices have been issued calling upon the noticees to make payment on gross tax liability, those have been directed to be kept in the Call Book till retrospective amendment is made in section 50 Act, 2017. Held that:- The Hon’ble High Court disposed the petition accordingly in terms of the stand taken by the respondents through the above administrative instructions of the CBIC.