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 informed that the changes which were made in Section 50 i.e inserting a proviso to Section 50(1), via section 100 of Finance (No. 2) Act, 2019 (23 of 2019) will come in effect from September 1, 2020.
Section 50 is related to the Interest on GST and It prompts charging interest on gross amount instead of the net amount. Now Government with this notification notified that interest will be applicable on the net amount with effect from 1st day of September 2020.
Amendment of Section 50
In section 50 of the Central Goods and Services Tax Act, in sub-section (1), the following proviso shall be inserted, namely
“Provided that the interest on tax payable in respect of supplies made during a tax period and declared in the return for the said period furnished after the due date in accordance with the provisions of section 39, except where such return is furnished after the commencement of any proceedings under section 73 or section 74 in respect of the said period, shall be levied on that portion of the tax that is paid by debiting the electronic cash ledger.”
It would be interesting to know here that the 39th GST council recommendations on Laws and Procedures presented that interest for delay in payment of GST 
In a recent case of Prasanna Kumar Bisoi Vs Union of India, Hon’ble Orissa High Court on 21st August 2020 addressed the GST department for disposal of representation filed by the applicant as soon as possible, based on the decision taken at the 39th meeting of the GST Council 
It is clearly observable that a rift is in between the taxpayers and the department regarding the date of applicability of the provisions of Proviso to Section 50 (1) of the Good and Service Tax Act, 2017.
The exact wording of the Notification No. 63/2020–Central Tax released on August 25, 2020, is engraved below.
