CBIC notifies revised Section 50 GST interest Provisions effective from June 2021 [Read Notification]

CBIC - revised Section 50 - GST interest Provisions - Taxscan

The Central Board of Indirect Taxes and Customs (CBIC) on the recommendation of the 43rd GST Council chaired by the Union Finance Minister, Nirmala Sitharaman, notified that the revised Section 50 GST interest Provisions will be effective from 1 June 2021.

Section 112 of the Finance Act providing for retrospective amendment in Section 50 of the CGST Act related to levy of interest has been notified with effect from June 1, 2021 vide Notification No. 16/2021 – Central Tax–  Dated 1st June, 2021.

“In exercise of the powers conferred by sub-section (2) of section 1 of the Finance Act, 2021 (13 of 2021), the Central Government hereby appoints the 1st day of June, 2021, as the date on which the provisions of section 112 of the said Act shall come into force,” the CBIC notified.

Section 50 of the CGST deals with the  Interest on delayed payment of tax which says that Every person who is liable to pay tax in accordance with the provisions of this Act or the rules made thereunder, but fails to pay the tax or any part thereof to the Government within the period prescribed, shall for the period for which the tax or any part thereof remains unpaid, pay, on his own, interest at such rate, not exceeding eighteen per cent., as may be notified by the Government on the recommendations of the Council.

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 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.

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