Economy

CBIC clarifies on late GST payments

Interest payable on delayed payment of GST will henceforth be calculated on net tax liability and the law is being amended to give effect to it, the Central Board of Indirect Taxes and Customs (CBIC) said on Saturday.

Amid concerns over its recent directive to field formations to begin recovery of about ₹46,000 crore of unpaid interest on delayed GST payment, the CBIC, in a series of tweets, clarified that the Centre and several State governments had prospectively amended the GST Acts to collect interest on net tax liability. GST laws now permit interest calculation on delayed GST payment on the basis of gross tax liability. This position has been upheld in the Telangana HC’s decision dated April 18, 2019.

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Printable version | Apr 18, 2021 12:14:11 AM | https://www.thehindu.com/business/Economy/cbic-clarifies-on-late-gst-payments/article30831511.ece

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