Interest to be levied on Net Cash Tax liability w.e.f. 1 September 2020
by ReinHeads Team | Aug 26, 2020
| Interest to be levied on Net Cash Tax liability w.e.f. 01 September 2020 |
Dear All,
The Government vide the Finance (No.2. Act), 2019 had amended Section 50 of the Central Goods and Service Tax Act, 2017 (‘the Act’) by inserting a proviso to the effect that the interest liability for delayed payment of GST is to be charged on the Net Cash Tax Liability.
The Government vide the Notification No. 63/2020 – Central Tax dated 25 August 2020 (‘the Notification’) has notified that Proviso to Section 50(1) of the Act, shall come into force from 01 September 2020.
It is imperative to note that while the GST Council in its 39th meeting held on 14 March 2020 had recommended that the aforesaid provision would be effective retrospectively from 1 July 2017, however, vide the Notification the same has been made effective only from 1 September 2020. |
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