Notification number 63/2020 - Central Tax dated 25th August 2020

The Ministry of Finance on 25-Aug-2020 released a notification in the official Gazette

Interest on gst on net liability

The Interpretations is as below:

Changes were made in Section 50 by inserting a proviso to Section 50(1), via Section 100 of Finance (No.2) Act, 2019
Section 50 is related to payment of Interest on GST
Prior to this notification interest on delayed payment was charged on the Gross GST Liability.
But now interest on delayed payment shall be charged only on the Net GST Liability.
Interest shall be collected on on the payment made in cash
The above provision shall come into force from 01-Sep-2020
This provision is not applicable (as was expected) with retrospective effect i.e 01-Jul-2017
This means Interest on Tax liability due prior to 01-Sep-2020 shall be charged on the Gross GST liability due
The above provision is not applicable where a return is furnished after the commencement of any proceeding under section 73 or section 74 in respect of the said period