No recovery will be made for interest charged on delayed payment of tax which has been made by the taxpayer debiting the credit ledger.
Section 50 of the CGST Act — Interest - The petitioner prayed for directions for quashing the order dated 22.02.2020 under section 75 (12) read with section 50(1) of the Act 2017 and consequential demand notice issued in form GST DRC-07 dated 22.02.2020. The respondent submitted that post issuance of Notification-no-63/2020 dated 25th August 2020, a press release was issued by Ministry of Finance, Govt of India on 26.08.2020 wherein it was clarified that amendment in section 50(1) has been made effective prospectively w.e.f. 01.09-2020 due to certain technical limitations, however for present no recoveries for interest charged on gross liability will be recovered for the past period as well by the central and state tax administration.
Held that:- The Hon’ble High Court closed the present proceedings.