Gujarat HC Send Notice to CBIC for Interest on Late Payments

On the Central government, the Gujarat high court has imposed a notice about the goods and service tax (GST) along with the Central Board of Indirect Taxes and Customs covering the concern of directing interest on late payment of taxes under GST.

Prior to that the GST council has directed 18% will be levied on the late furnishing of the payment via cash ledger and not through the input tax credit A complete guide for understanding the basics of input tax credit and it calculation with detailed examples under GST (Goods and Services Tax) India. Read more . On the net salary grounds, interest will be imposed and not on the gross. The government declares the postponement of the decision. It is also stated that for the particular exemptions. For example, these advantages and interest will be taxed on a gross basis post-September of the subsequent year, commented Abhishek Rastogi, the partner at Khaitan & Co. disappointed a firm furnished an application in Gujarat HC.

The applicant specified that the privileges through the government revoked the GST council’s decision Get to know about GST (Goods and Services Tax) council 1st to 43rd meeting updates and decisions taken by members. We have covered 1st meeting to last meeting decisions. Read more . “The GST Council thought it fit to recommend to the government to levy interest only on net cash liability, irrespective of the classification of taxpayers.

Such a mandate from the GST Council could not have been overlooked or restrictive,” learn the application.

Rastogi said that the input tax credit was taxpayers’ money interest should not be taxed on it for the late payment. He said that if the assessee urges to amend his returns post-September of the following year, he must permit furnishing so excluding the drawing interest on the late payments furnished from the input tax credit.

He specified that despite examination being done beneath the GST plan interest will not be imposed on the part paid through the credit use.