Interest on Net Cash Tax Liability to Act Under GST Section 50, Bombay HC

The Bombay high court has canceled all the notices provided by the respondent authority stating that now the interest will be levied on net cash tax liability before the change in section 50 of Central GST Act, 2017 Get to know about GST levy terms on disposal of the company’s capital goods under the CGST Act 2017. Also, we mentioned GST on the disposal of capital assets, if no ITC is claimed on capital goods. Read more.

The applicant is the owner of KLT Automotive, and Tubular Products Limited is a limited company having its registered office at Andheri (East), Mumbai. It has a commitment to the production of automotive components. It is enrolled under the Central Goods and Service Tax Act, 2017 along with the Maharashtra Goods and Service Tax Act, 2017.

The applicant has revealed that has been taking the ITC of supplies and paying GST after slashing the ITC on all the output supply. In Form GSTR-3B and GSTR-1 The Central Board of Indirect Taxes and Customs ( CBIC ) has taken the EVC ability prolonged to businesses to file GSTR1 and GSTR 3B. The facility to GSTR 3B. Read More although the applicant reveals that there is a delay in furnishing the taxes on monthly basis.

On asking the petitioner for filing the interest on delayed payments while petitioner only furnishes payments on the net tax liability. The total interest was then calculated on the net debit. Through another email, the respondent has asked the demand of interest for Rs 7,62,15,267 upon late dues for GST for July 2017 to March 2020 and the interest calculated on the net debit.

The judgment has conducted upon the applicant where the revival notice has given to several customers of the applicant. Central issue proposed in writing to the applicant that the charge under section 50 of the Central Goods and Service Tax Act, 2017 is applied on net liability.

Read Also: CT Notification 63/2020: Interest on Net GST Liability Ahead for Taxpayers The Central Board of Indirect Taxes and Customs (CBIC) Released a notification with No. 63/2020–Central Tax on August 25, 2020. With this notification, CBIC. Read More

The two judges specify on September 18, 2020 interest will be charged on the net cash liability before the alteration period from July 1, 2017, to August 31, 2020.

“Recovery (garnishee) notices issued by the respondents on 16.07.2020 are hereby quashed. Respondents to intimate the petitioner about the quantum of interest payable on account of a delayed payment of GST for the period under consideration in terms of the administrative instructions dated 18.09.2020 and the same shall be paid by the petitioner, if not already paid,”